Cahuc, Pierre; Laroque, Guy - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007
We analyze optimal taxation in an economy with monopsonistic labor markets. Theindividuals, whose only decisions are whether to work, or not, have heterogeneousproductivities and opportunity costs of work. Given its preferences for redistribution, thegovernment, which does not observe the...