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market generate unemployment. Workers differ in productivity. The government does not observe workers' productivity but only …
Persistent link: https://www.econbiz.de/10012776136
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 …
Persistent link: https://www.econbiz.de/10013146465
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 …
Persistent link: https://www.econbiz.de/10012999019
The efficiency of educational choices is studied in a search-matching model where individuals face a tradeoff …: acquiring formal education or learning while on the job. When their education effort is successful, newcomers directly obtain a … and individuals devote too much effort to formal education. A self-financing tax and subsidy policy restores market …
Persistent link: https://www.econbiz.de/10013049747
We analyze the optimal nonlinear income tax schedule when taxpayers earn multiple incomes and differ along many unobserved dimensions. We derive the necessary conditions for the government s optimum using both a tax perturbation and a mechanism design approach, and show that both methods produce...
Persistent link: https://www.econbiz.de/10014083899
This paper revisits the standard model of labor supply under two additional assumptions: consumption requires time and some limited amount of work is enjoyable. Whereas introducing each assumption without the other one does not produce novel insights, combining them together does if the wage...
Persistent link: https://www.econbiz.de/10012963868
uses parental education as a measure of exogenous circumstances. An empirical microeconometric model of labour supply in …
Persistent link: https://www.econbiz.de/10013153308
In a number of high-income countries over the past few decades there has been a large growth in income inequality and at the same time a shift in the burden of taxation from the top to the middle of the income distribution. This paper applies the theory of optimal piecewise linear taxation to...
Persistent link: https://www.econbiz.de/10013051448
education wedges in this setting analytically and numerically, using a calibrated example. We present ways to implement the … given out to agents during education. These repayment plans are contingent on loan size and income and capture the history … dependence of the labor wedges. Applying the model to US-data and a binary education decision (graduating from college or not) we …
Persistent link: https://www.econbiz.de/10013118777
accumulation. When young, individuals decide on education, saving, and nonqualified labour. When old, individuals supply qualified … if selfish individuals externalize the positive effect of education on descendents' productivity. It is shown to be … second best not to distort education if the human capital investment function is isoelastic. If the function is not …
Persistent link: https://www.econbiz.de/10013149817