Within an efficiency wage framework, we study the effects of two revenue-neutral tax reformsthat change the progressivity of the labour tax system. A revenue-neutral increase in both thewage tax and tax exemption and a revenue-neutral change in the composition of labourtaxation towards the tax...

Gender Based Taxation (GBT) satisfies Ramsey´s optimal criterion by taxing less the moreelastic labor supply of (married) women. This holds when different elasticities between menand women are taken as exogenous and primitive...

This paper contributes to the debate about the optimal design of tax-transfer systems. Basedon the theory of optimal taxation, combined with microsimulation and microeconometrictechniques we derive the welfare function which makes the current German tax and transfersystem for single women optimal...

This paper studies in the presence of flexible outsourcing the effects of outsourcing costs, productivity of outsourcing, wage tax and tax exemption in an imperfectly competitive labour markets when labour unions and firms negotiate wages and the impacts of labour tax progression on domestic...

We build a theoretical model to study whether a minimum wage can be welfare-improving if itis implemented in conjunction with an optimized nonlinear income tax. We consider this issuein a framework where search frictions on the labor market generate unemployment. Workersdiffer in productivity...

We analyze optimal taxation in an economy with monopsonistic labor markets. Theindividuals, whose only decisions are whether to work, or not, have heterogeneousproductivities and opportunity costs of work. Given its preferences for redistribution, thegovernment, which does not observe the...

This paper is the first to provide evidence of efficient taxation of groups with heterogeneouslevels of ‘tax morale’. We set up an optimal income tax model where high tax morale impliesa high subjective cost of evading taxes. The model predicts that ‘nice guys finish last’: groupswith...

Given its significance in practice, piecewise linear taxation has received relatively littleattention in the literature. This paper offers a simple and transparent analysis of its maincharacteristics. We fully characterize optimal tax parameters for the cases in which budgetsets are convex and...

Does joint taxation disadvantage women? To answer that question, this paper begins byreviewing unitary and bargaining models of intrafamily allocation, and then discusses thedeterminants of "bargaining power" in a world without taxes...

When a deficit occurs in the funding of collective goods, it is usually covered by raising theamount of taxes or by rationing the supply of the goods. This article compares the efficiencyof these institutions. We report the results of a 2x2 experiment based on a game in the firststage of which...