Similar Search Results

Increasing Hours Worked : Moonlighting Responses to a Large Tax Reform

Tazhitdinova, Alisa - 2020

Moonlighting is increasingly popular in OECD countries, with 5 to 10% of workers holding two or more jobs. However …, little is known about the responsiveness of moonlighting to financial incentives due to the lack of identifying variation … marginal tax rate by between 19.5 to 66pp. I show that the reform resulted in a dramatic increase in moonlighting that was not …

Persistent link: https://www.econbiz.de/10012481274

Optimal Tariffs When Labor Income Taxes Are Distortionary

Kocherlakota, Narayana Rao - National Bureau of Economic Research - 2025

A classic result in trade theory is that it is socially optimal to set the tariff on a good equal to the inverse of the elasticity of its foreign supply. However, this result is based on the assumption that the government can use lump-sum taxes. The paper considers a simple open representative...

Persistent link: https://www.econbiz.de/10015409790

Risk Markups

Di Tella, Sebastian; Malgieri, Cedomir; Tonetti, Christopher - National Bureau of Economic Research - 2025

We study optimal policy when heterogeneous markups reflect compensation for uninsurable persistent idiosyncratic risk. The optimal labor tax keep rate equals (1) the aggregate markup times (2) workers' consumption share divided by their Pareto weight. Markups correctly capture the private cost...

Persistent link: https://www.econbiz.de/10015409809

Learning and (or) Doing : Human Capital Investments and Optimal Taxation

Stantcheva, Stefanie - 2015

This paper considers a dynamic taxation problem when agents can allocate their time between working and investing in their human capital. Time investment in human capital, or "training," increases the wage and can interact with an agent's intrinsic, exogenous, and stochastic earnings ability. It...

Persistent link: https://www.econbiz.de/10012457287

How Does Tax Progressivity and Household Heterogeneity Affect Laffer Curves?

Holter, Hans A. - 2014

How much additional tax revenue can the government generate by increasing labor income taxes? In this paper we provide a quantitative answer to this question, and study the importance of the progressivity of the tax schedule for the ability of the government to generate tax revenues. We develop...

Persistent link: https://www.econbiz.de/10012457978

High Marginal Tax Rates on the Top 1%? Lessons from a Life Cycle Model with Idiosyncratic Income Risk

Kindermann, Fabian - 2014

In this paper we argue that very high marginal labor income tax rates are an effective tool for social insurance even when households have preferences with high labor supply elasticity, make dynamic savings decisions, and policies have general equilibrium effects. To make this point we construct...

Persistent link: https://www.econbiz.de/10012458064

Enlisting Employees in Improving Payroll-Tax Compliance : Evidence from Mexico

Kumler, Todd - 2013

A growing body of research suggests that difficulties in collecting taxes are an important constraint on economic performance in developing countries. Evidence from rich countries points to third- party reporting -- in particular, employer reports of employees' wages -- as a potential remedy. To...

Persistent link: https://www.econbiz.de/10012459276

Average Marginal Labor Income Tax Rates under the Affordable Care Act

Mulligan, Casey B. - 2013

The Affordable Care Act includes four significant, permanent, implicit unemployment assistance programs, plus various implicit subsidies for underemployment, and expanded Medicaid eligibility for adults. Every sector of the economy, and about half of nonelderly adults, is directly affected by at...

Persistent link: https://www.econbiz.de/10012459296

Entrepreneurial Taxation with Endogenous Entry

Scheuer, Florian - 2013

This paper analyzes Pareto optimal non-linear taxation of profits and labor income in a private information economy with endogenous firm formation. Individuals differ in both their skill and their cost of setting up a firm, and choose between becoming workers and entrepreneurs. I show that a tax...

Persistent link: https://www.econbiz.de/10012459427

Optimal Capital Versus Labor Taxation with Innovation-Led Growth

Aghion, Philippe - 2013

Chamley (1986) and Judd (1985) showed that, in a standard neoclassical growth model with capital accumulation and infinitely lived agents, either taxing or subsidizing capital cannot be optimal in the steady state. In this paper, we introduce innovation-led growth into the Chamley-Judd...

Persistent link: https://www.econbiz.de/10012459575