. We characterize a class of environments in which the tax on labor goes to zero in the long run, while the tax on capital … income may be non-zero, reversing the standard prediction of the Ramsey tax literature. The zero labor tax is an optimal long … sovereign debt constraints. The front loading of labor taxes allows the economy to build a large (aggregate) debt position in …

productivity gap" suggests that labor is greatly misallocated across sectors. In this paper, we draw on new micro evidence to ask … to what extent the gap is still present when better measures of sector labor inputs and value added are taken into …