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In this paper we provide a novel justification for the use of minimum wage rules to supplement the optimal tax-and-transfer system. We demonstrate that if labor supply decisions are concentrated along the intensive margin and employment is efficiently rationed, a minimum wage rule can be...
Persistent link: https://www.econbiz.de/10010337632
Expansion of the public sector and redistributive policies may reduce income inequality, but formal tests suffer from the problem of endogeneity of government size with respect to the distribution of income. Studying 30 European countries over the period 2004-2015, we apply instrumental variable...
Persistent link: https://www.econbiz.de/10011955505
Expansion of the public sector and redistributive policies may reduce income inequality, but formal tests suffer from the problem of endogeneity of government size with respect to the distribution of income. Studying 30 European countries over the period 2004-2015, we apply instrumental variable...
Persistent link: https://www.econbiz.de/10012151150
to a flat (inferior) regime is not too welfare-costly, even when the extent of re-distribution is significant. Therefore … redistribution …
Persistent link: https://www.econbiz.de/10013124389
to a flat (inferior) regime is not too welfare-costly, even when the extent of re-distribution is significant. Therefore … redistribution. -- flat tax ; re-distribution ; migration ; tax-competition …
Persistent link: https://www.econbiz.de/10009130229
Due to behavioral effects triggered by redistributional interventions, it is still an open question whether government policies are able to effectively reduce income inequality. We contribute to this research question by using different country-level data sources to study inequality trends in...
Persistent link: https://www.econbiz.de/10010238356
This paper studies the aggregate and distributional implications of introducing tuition fees for public education services into a tax system with income and consumption taxes. The setup is a neoclassical growth model where agents differ in capital holdings. We show that the introduction of...
Persistent link: https://www.econbiz.de/10012985448
I provide a simple two-period model comparing lump-sum taxes with proportional labor taxes. The difference to the classical optimal taxation literature is that I introduce a behavioral twist according to which people's aspirations change from one period to another as suggested by empirical...
Persistent link: https://www.econbiz.de/10012917632
This chapter reviews the theory of the voluntary public and private redistribution of wealth elaborated by economic … voluntary redistribution of income or wealth. The theory concentrates on lump-sum voluntary transfers, individual or collective … altruistic transfers by Pareto-efficient public redistribution. The chapter is organized as follows. Section 2 presents an …
Persistent link: https://www.econbiz.de/10014023678
There is clear evidence that fairness plays a role in redistribution. Individuals want to compensate others for their …
Persistent link: https://www.econbiz.de/10013122256