non-market activities. Search-matching frictions on the labor markets create unemployment. Wages, labor demand and … ; adverse selection ; random participation ; unemployment ; labor market frictions …

unemployment. Wages, labor demand and participation are endogenous. The government only observes wage levels. Under a Maximin … is increasing, marginal tax rates are positive everywhere, while wages, unemployment rates and participation rates are … distorted downwards compared to their laissez-faire values. A simulation exercise confirms some of these properties under a …

We propose a canonical model of optimal nonlinear redistributive taxation with matching unemployment. In our model … efficient values, at the optimum gross wages and unemployment are lower. Average tax rates are moreover increasing in wages. The … robustness of these properties is also discussed. -- Optimal income taxation ; unemployment ; matching …