(voluntary) nonparticipation and (involuntary) unemployment. The optimal employment tax rate is given by an inverse employment … elasticity rule. This rule depends on the global response of the employment rate, which depends not only on the participation … responses. For plausible parameters, our matching environment induces much lower employment tax rates than the usual competitive …

This paper characterizes optimal income taxation when individuals respond along both the intensive and extensive …

-neutral change in the composition of labour taxation towards the tax with the smaller tax base will lead to the same results: they … moderate wages, workers' effort, effective labour input and aggregate output. Whether employment rises or falls, however … labour productivity and thus thwarts the positive employment effect of wage moderation …

What are the impacts of labor tax reform on wage setting and employment to keep the relative tax burden per low … of low-skilled workers, whereas it will decrease (increase) employment of high-skilled workers in CES utility function …

This paper characterizes the optimal redistributive taxation when individuals are heterogeneous in two exogenous …

, to keep the relative tax burden per worker constant, has a wage moderating and a positive effect on employment and …

In this paper we argue that, for a given overall level of labour income taxation, a more progressive tax schedule … increases employment. From a theoretical point of view, higher progressivity increases overall employment through a wage … moderating effect and also because employment of low-paid workers is more elastic to wages. We test these theoretical predictions …

, extending the Diamond-Saez formula. The theory and numerical simulations on the US case show that the level and the slope of the …

We propose a canonical model of optimal nonlinear redistributive taxation with matching unemployment. In our model … observes negotiated wages. More progressive taxation leads to wage moderation that boosts labor demand. We design the optimal …