dimensions: their skills and their values of non-market activities. Search-matching frictions on the labor markets create … unemployment. Wages, labor demand and participation are endogenous. The government only observes wage levels. Under a Maximin … general utilitarian objective. Taking account of the wage-cum-labor demand margin deeply changes the equity-efficiency trade …

conjunction with an optimized nonlinear income tax. We consider this issue in a framework where search frictions on the labor …

, agents are endowed with different skill levels and labor markets are perfectly segmented by skill. The government only … observes negotiated wages. More progressive taxation leads to wage moderation that boosts labor demand. We design the optimal … nonlinear redistributive tax schedule in the absence of welfare benefits and extensive labor supply margin. Compared to their …

, extending the Diamond-Saez formula. The theory and numerical simulations on the US case show that the level and the slope of the …

(labor supply) responses, but also on the vacancy posting (labor demand) responses and on the product of these two types of … participation model. -- optimal taxation ; labor market frictions ; unemployment …

We derive a sufficient statistics optimal tax formula in a general model that incorporates unemployment and endogenous … wages, to study the shape of the tax and transfer system at the bottom of the distribution. The sufficient statistics are … the macro employment response to taxation and the micro and macro participation responses. We estimate these statistics …