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In this paper we allude to a novel role played by the non-linear income tax system in the presence of adverse selection in the labor market due to asymmetric information between workers and firms. We show that an appropriate choice of the tax schedule enables the government to affect the wage...
Persistent link: https://www.econbiz.de/10011289068
provide a novel decomposition of labor income tax formulas into a redistribution and an insurance component. The latter is … capital tax is non-zero and trades off redistribution and insurance against savings distortions. Our quantitative results … bound on optimal taxes: even for welfare functions that do not value redistribution, marginal tax rates are positive for all …
Persistent link: https://www.econbiz.de/10011283108
This paper presents a comprehensive analysis of the role of capital taxation in advanced economies with a focus on the Swedish experience. We synthesize the existing theoretical literature, present facts about the capital stock and its distribution, review current capital tax practices and...
Persistent link: https://www.econbiz.de/10011845732
more unevenly distributed then productivity, technical progress always increases inequality. Redistribution from profits to …
Persistent link: https://www.econbiz.de/10011401020
Minimum wages alter the allocation of firm-idiosyncratic risk across workers. To establish this result, we focus on Italy, and leverage employer-employee data matched to firm balance sheets and hand-collected wage floors. We find a relatively larger pass-through of firm-specific labor-demand...
Persistent link: https://www.econbiz.de/10012795332
which this ratio increases coincide with those in which Democrats rule the government and there is more redistribution from … the power are characterized by a fall in the ratio and less redistribution from the rich to the rest of the population …
Persistent link: https://www.econbiz.de/10011913675
We characterize optimal redistribution in a dynastic family model with human capital. We show how a government can …
Persistent link: https://www.econbiz.de/10010440541
If redistribution is distortionary, and if the income of skilled workers is due to knowledgeintensive activities and … reduction reduces statis inefficiency. On the other hand, standard redistribution also reduces the level of R and D because it … that standard redistribution always dominates limitations to IPRs. …
Persistent link: https://www.econbiz.de/10011415064
lifetime earnings risk. Based on a dynamic life-cycle model, we find that redistribution through the tax-and -transfer system …
Persistent link: https://www.econbiz.de/10011795062
Persistent link: https://www.econbiz.de/10001829804