This paper calibrates the graduated income tax system currently in place in France while assuming that the number of earning-ability types in the economy is four. It also computes the optimal linear and nonlinear income tax schedules for this economy. Its main finding is that while an optimal...

This paper studies the design of retirement and disability policies when individuals differ in both productivity and health. The second-best solution implies (downward) distortions in the (per-period) labor supply and in the choice of retirement age for some individuals, and lesser...