There are many dimensions along which changing labour market income could be explored. The author chooses to direct attention to the changes that are occuring among males of different ages. The changes in Australia are very large. Changes of a similar magnitude are occuring in the UK and...

In a number of high-income countries over the past few decades there has been a large growth in income inequality and at the same time a shift in the burden of taxation from the top to the middle of the income distribution. This paper applies the theory of optimal piecewise linear taxation to...