attention in the literature on optimal income taxation. This paper offers a simple and transparent analysis of its main …

This paper argues that, for a given overall level of labour income taxation, a more progressive tax schedule reduces … these theoretical predictions on a panel of 21 OECD countries over 1998-2008. Controlling for the burden of taxation at the … average wage, we show that a more progressive taxation reduces the unemployment rate and increases the employment rate. These …