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We illustrate a novel informational feature of education, which the government may utilize. Discretionary decisions of individuals to acquire education may serve as an additional signal (to earned labor income) on the underlying unobserved innate earning ability, thereby mitigating the...
Persistent link: https://www.econbiz.de/10010261166
This paper studies the redistribution effect of personal income tax in Pakistan. We decompose the overall tax system in order to evaluate the contribution of rate, allowances, deductions, exemptions and credits. The structure given in Income Tax Ordinance, 2001, is applied to gross household...
Persistent link: https://www.econbiz.de/10005078647
exemptions. Pensions are more equally distributed than income received from employment, and intra-cohort inequality does not seem … to be a more convincing explanation. What is the impact of differential taxation on the inequality between retirees and …
Persistent link: https://www.econbiz.de/10009321772
In most welfare analyses, especially in the literature on normative inequality measurement, it is a commonplace to … assume a direct relationship between the distribution of income and social welfare. As a result, this relationship is … formally summarized by a single function, called a reduced-form social welfare function. Hence, with reference to some transfer …
Persistent link: https://www.econbiz.de/10009643107
We re-examine a key result in the optimal UI literature that benefits should decline over time. We show that when the population is heterogeneous, Pareto-efficiency may call for multiple payment schedules, some with benefits that fall over time and some with benefits that rise over time.
Persistent link: https://www.econbiz.de/10008577377
This paper studies optimal dynamic tax policy under the threat of political reform. A policy will be reformed ex post if a large enough political coalition supports reform; thus, sustainable policies are those that will continue to attract enough political support in the future. We find that...
Persistent link: https://www.econbiz.de/10011168909
This paper, prepared for the Handbook of Income Distribution (edited by A.B. Atkinson and F. Bourguignon), reviews some of the central issues that arise in thinking about the motives for, politics of, constraints on and measurement of, redistribution. Amongst the themes are: the potential...
Persistent link: https://www.econbiz.de/10005787859
There is a long-standing controversy over the question of whether targeting social transfers towards the bottom part of … claimed that the more we target benefits at the poor, the less likely we are to reduce poverty and inequality. The basic … empirical underpinning of this claim is a strong inverse relationship at the country level between social transfer targeting and …
Persistent link: https://www.econbiz.de/10010319431
There is a long-standing controversy over the question of whether targeting social transfers towards the bottom part of … claimed that "the more we target benefits at the poor, the less likely we are to reduce poverty and inequality". The basic … empirical underpinning of this claim is a strong inverse relationship at the country level between social transfer targeting and …
Persistent link: https://www.econbiz.de/10009753045
There is a long-standing controversy over the question of whether targeting social transfers towards the bottom part of … claimed that "the more we target benefits at the poor, the less likely we are to reduce poverty and inequality". The basic … empirical underpinning of this claim is a strong inverse relationship at the country level between social transfer targeting and …
Persistent link: https://www.econbiz.de/10010884086