. First, I identify conditions under which any progressive tax reform induces technical change that compresses the pre-tax … wage distribution. The key intuition is that progressive tax reforms tend to increase labor supply of less skilled relative … progressive tax reforms. Third, I show that directed technical change effects make the optimal tax scheme more progressive …

progressive income tax and a lump-sum transfer. We find that the redistribution scheme lowers the degree of globalization measured …We look at the effect of domestic redistribution policy on offshoring in an asymmetric two country model of … monopolistic competition, heterogeneous firms and occupational choice. The redistribution scheme is modeled by a combination of a …

transfers do not decline, indicating no loss in redistribution. Our estimates imply a 9-14% social tax rate. The welfare … benefits of informal redistribution may come at a cost, depressing labor supply and productivity. … frequent. Such arrangements may distort labor supply - acting as a "social tax" that dampens the incentive to work. We document …

Italy is employed to simulate and identify income tax-transfer rules that are optimal according to the extended EOp … criterion. We look for second-best optimality, i.e. the tax-transfer rules are not allowed to depend on family background, they … individualized) lump-sum transfer (positive or negative) and by one or two marginal tax rates. A rather striking result of the …

In this paper, I will describe in detail both the Earned Income Tax Credit and the Child Tax Credit in the U ….S. safety net (broadly defined) during the Great Recession of 2007-2008. -- taxes ; welfare ; families ; EITC ; child tax credit …

and spending. On average, the aid coefficients are positive but smaller than the tax coefficients, indicating that in the …

coefficients are positive but smaller than the tax coefficients, indicating that, in the long run and short run, taxes have a …

demonstrate what the tax and transfer system achieves from a lifecycle perspective and why it is valuable. We undertake a five …-individual redistribution and between- and within-individual insurance. These components are distinguished from perspective of the start of … females and we also highlight how behavioural responses affect the results. Analysis is conducted for the 2015 UK tax and …

This paper provides a detailed analysis on the incidence of the tax structure on the labor market. To do so it goes … a payroll tax bias (PTB): the proportion of payroll taxes paid by employees with respect to the one paid by firms. We … with respect to the level of the fiscal wedge, -- unemployment ; unemployment persistence ; fiscal wedge ; payroll tax bias …

We augment a standard tax model by concerns about tax equity: people get upset when labour is taxed more heavily than … capital. Even the slightest concern for tax equity invalidates the common recommendation for small open economies that capital … should remain tax-exempt. This holds for exogenous as well as for endogenous government expenditures and irrespective of …