Abstract We study the design of retirement and disability policies and illustrate the often observed exit from the labor force of healthy workers through disability insurance schemes. In our model, two types of individuals, disabled and leisure-prone ones, have the same disutility for labor and...

This paper studies the optimal non linear income tax of couples. We build a general unitary model of labor supply and allow multidimensional heterogeneity in a discrete type framework. We concentrate our analysis on the resulting intra-family labor allocation of labor supplies and show that this...

It is often argued that implicit taxation on continued activity of elderly workers is responsible for the widely observed trend towards early retirement. In a world of laissez-faire or of first-best efficiency, there would be no such implicit taxation. The point of this paper is that when...