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This paper studies optimal taxation schemes for education in a search-matching model where the labor market is divided between a high-skill and a low-skill sector. Two public policy targets - maximizing the global employment level and optimizing the social surplus - are studied according to...
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's social welfare function. The tax-transfer rules considered as candidates are members of a class that includes as special …
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constraint. The optimality criterion is the class of Kolm's social welfare function. The tax-transfer rules considered as …
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's social welfare function. The tax-transfer rules considered as candidates are members of a class that includes as special …
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incomes, including among poorer households, and to raise welfare. Our results suggest that in-work transfers could be refined …
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