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We analyze the role of optimal income taxation across different local labor markets. Should labor in large cities be taxed differently than in small cities? We find that a planner who needs to raise revenue and is constrained by free mobility of labor across cities does not choose equal taxes...
Persistent link: https://www.econbiz.de/10013029153
Cultural diversity is a complex and multi-faceted concept. Commonly used quantitative measures of the spatial distribution of culturally-defined groups – such as segregation, isolation or concentration indexes – are often only capable of identifying just one aspect of this distribution. The...
Persistent link: https://www.econbiz.de/10013051810
Persistent link: https://www.econbiz.de/10012989824
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
simulation model is realized in comparison with the standard Heckman model. The lifetime models based on the fixed effect vector … decomposition yield the most stable and unbiased simulation results, both under certainty and uncertainty. Due to its improved …
Persistent link: https://www.econbiz.de/10013118517
This paper presents a theoretical and empirical analysis of the role of life expectancy for optimal schooling and lifetime labor supply. The results of a simple prototype Ben-Porath model with age-specific survival rates show that an increase in lifetime labor supply is not a necessary, nor a...
Persistent link: https://www.econbiz.de/10013084661
If policy-makers care about well-being, they need a recursive model of how adult life-satisfaction is predicted by childhood influences, acting both directly and (indirectly) through adult circumstances. We estimate such a model using the British Cohort Study (1970). The most powerful childhood...
Persistent link: https://www.econbiz.de/10013073851
We propose an original model of human capital investments after leaving school in which individuals differ in their initial human capital obtained at school, their rate of return, their costs of human capital investments and their terminal values of human capital at a fixed date in the future....
Persistent link: https://www.econbiz.de/10013081797
ignoring the household as unit of decision-making has relevant empirical consequences. In estimation, the individual search …
Persistent link: https://www.econbiz.de/10013099113
International migration is a selective process that induces ambiguous effects on human capital and economic development … and human capital accumulation in a multi-country context. We then embed this migration-education nexus into a development … accounting framework to quantify the effects of migration on development and inequality. We find that selective emigration …
Persistent link: https://www.econbiz.de/10014350135