suggest that a more progressive tax schedule reduces the unemployment rate and increases the employment rate. These findings …

We propose a canonical model of optimal nonlinear redistributive taxation with matching unemployment. In our model … efficient values, at the optimum gross wages and unemployment are lower. Average tax rates are moreover increasing in wages. The … robustness of these properties is also discussed. -- Optimal income taxation ; unemployment ; matching …

We derive a sufficient statistics optimal tax formula in a general model that incorporates unemployment and endogenous … resembles a Negative Income Tax than an Earned Income Tax Credit relative to the case where unemployment and wage responses are …

levels and endogenous involuntary unemployment due to frictions in the labor markets. Redistributive taxation distorts labor … demand and wages. Compared to their efficient values, gross wages, unemployment and participation are lower. Average tax …