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A common assumption in the optimal taxation literature is that the social planner maximizes a welfarist social welfare function with weights decreasing with income. However, high transfer withdrawal rates in many countries imply very low weights for the working poor in practice. We extend the...
Persistent link: https://www.econbiz.de/10011902082
deserve tax breaks. We demonstrate that the German tax-transfer system conflicts with a welfarist inequality averse social … planner. It is consistent with a planner who is averse to both inequality and high tax liabilities. The tax-transfer schedule … European countries and the USA and show that their redistributive systems can be rationalized with an inequality averse social …
Persistent link: https://www.econbiz.de/10013041417
The standard model of optimal minimum wage policy in a perfectly competitive labor market suggests that a positive tax rate on minimum wage income is Pareto inefficient. However, most countries with minimum wage legislation exhibit a positive tax rate on minimum wage income. We solve this...
Persistent link: https://www.econbiz.de/10011984960
Economic conditions at the time of labour market entry can induce wage differentials between workers entering the labour market at different points in time. While the existence and persistence of these entry wage differentials are well documented, little is known about their interaction with...
Persistent link: https://www.econbiz.de/10010269997
We examine how changes in task content over time condition occupational wage development. Using survey data from Germany, we document substantial heterogeneity in within-occupational changes in task content. Combining this evidence with administrative data on individual employment outcomes over...
Persistent link: https://www.econbiz.de/10013412989
I show that workers update expectations about job search and salary growth when exposed to labor market news. To identify the impact of news on expectations, I exploit Foxconn's announcement to build a large production plant in Racine County, Wisconsin. Exposure to positive news leads to an...
Persistent link: https://www.econbiz.de/10014420663
We measure individual bias in labor market expectations in German survey data and find that workers on average significantly overestimate their individual probabilities to separate from their job when employed as well to find a job when unemployed. These biases vary significantly between...
Persistent link: https://www.econbiz.de/10014470171
Economic conditions at the time of labour market entry can induce wage differentials between workers entering the labour market at different points in time. While the existence and persistence of these entry wage differentials are well documented, little is known about their interaction with...
Persistent link: https://www.econbiz.de/10008520832
In belligerent countries, male-to-female sex ratios at birth increased during and shortly after the two world wars. These rises still defy explanation. Several causes have been suggested (but not tested) in the literature. Many of these causes are proximate in nature, reflecting behavioral...
Persistent link: https://www.econbiz.de/10010265812
This paper studies the persistence of a large, unexpected, and regionally very unevenly distributed population shock, the inflow of eight million ethnic Germans from Eastern Europe to West Germany after World War II. Using detailed census data from 1939 to 1970, we show that the shock had a...
Persistent link: https://www.econbiz.de/10011741595