We derive a general optimal income tax formula when individuals respond along both the intensiveand extensive margins and when income effects can prevail. Individuals are heterogeneous across twodimensions: their skill and their disutility of participation. Preferences over consumption and...

This paper develops a joint evaluation of vocational training and unemployment insurance.This allows to analyze how these schemes complement each other from theviewpoints of labor market indicators and of welfare. For this purpose, a generalequilibrium matching model is built where workers are...

Ce rapport sur les interdépendances économiques et sociales entre la Wallonie et Bruxelles s’inscrit dans cette volonté de faire progresser l’entrepreneuriat dans notre région. Bruxelles est une métropole dont l’hinterland se situe spatialement en grande partie en Wallonie. Pour...

We characterize optimal redistributive taxation when individuals are heterogeneous in their skills and their values of non-market activities. Search-matching frictions on the labor markets create unemployment. Wages, labor demand and participation are endogenous. Average tax rates are increasing...