What is the impact of the threat of migration for tax purposes on the optimum redistributive policy of a country which aims at preventing emigration of highly skilled individuals? We use the theory of optimum income taxation agrave; la Mirrlees [1971] to answer this question. The world consists...

This paper examines the tax schedule for low income families with children. We take an optimal tax approach based on a structural labour supply model which incorporates unobserved heterogeneity, fixed costs of work, childcare costs and the detailed non-convexities of the tax and transfer system....