Boone, Jan; Bovenberg, A Lans - C.E.P.R. Discussion Papers - 2002
In order to explore the optimal taxation of low-skilled labour, we extend the standard model of optimal non …-linear income taxation in the presence of quasi-linear preferences in leisure by allowing for in-voluntary unemployment, job search …, an exogenous welfare benefit, and a non-utilitarian social welfare function. In trading of more low-skilled employment …