Bastani, Spencer; Blumkin, Tomer; Micheletto, Luca - 2021
We analyze optimal redistribution in the presence of labor market signaling where innate productive ability is not only … unobserved by the government, but also by prospective employers. Signaling in both one and two dimensions is considered, where in … redistributing income and affecting signalling incentives is analyzed, as well as extended tax systems that combine income taxation …