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Traditionally, it has been argued that profit sharing can increase employment and welfare because it lowers marginal labour costs without reducing total cost or labour income. In this paper, we show that profit sharing can also represent a Pareto-improvement if labour supply is excessive due to...
Persistent link: https://www.econbiz.de/10013099093
-utility constrained social optimum. Unexpectedly, numerical simulations show that this theory could account for the observed distribution …
Persistent link: https://www.econbiz.de/10013022644
a common framework. We illustrate this by analyzing the role of income and wealth as dimensions of multidimensional well … the country ranking depending on the measure. While in Germany wealth predominantly contributes to the intensity of …
Persistent link: https://www.econbiz.de/10013120839
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
attainment independently predict household wealth in the Health and Retirement Study (HRS). This relationship is partly explained … gradient in wealth. We show that individuals with lower genetic scores are more prone to reporting "extreme beliefs" (e … wealth disparities not only through education and higher earnings, but also through their impact on the ability to process …
Persistent link: https://www.econbiz.de/10012962275
that longitudinal data on BMI are needed. We suggest a theory of imitation - where utility depends on relative weight - in …
Persistent link: https://www.econbiz.de/10012767092
focus of the paper is on transitional dynamics under different initial wealth levels. Whether an initially small business … toward the informal sector even though the initial wealth level is high. Lowering taxes on formal activity joined with strict …
Persistent link: https://www.econbiz.de/10012979858
. This paper studies the role of endogenous owner hours in shaping the wealth distribution among entrepreneurs. We introduce … levels and the dispersion of wealth among entrepreneurs. Long owner hours incentivize poor, highly productive individuals to … be owners and help the most productive owners to accumulate large quantities of wealth. On net, owners working long hours …
Persistent link: https://www.econbiz.de/10012858508
We evaluate the effectiveness of a more progressive tax scheme in raising government revenues. We develop a life-cycle economy with heterogeneity and endogenous labor supply. Households face a progressive income tax schedule, mimicking the Federal Income tax, and flat-rate taxes that capture...
Persistent link: https://www.econbiz.de/10013049753
This paper holistically addresses the effective (relative) income tax contribution of a given in-come (or, wealth … national income (or wealth) appropriated by the same income group. In turn, we develop the Fiscal Inequality Coefficient which … compares the effective percentage income tax payments of pairs of income (or wealth) groups. Using data for the US, we …
Persistent link: https://www.econbiz.de/10012948621