Maderner, Nina; Rochet, Jean-Charles - In: Scandinavian Journal of Economics 97 (1995) 4, pp. 621-33
A generalization of J. A. Mirrlees's (1971) income taxation model is formulated in which qualifications of workers are both endogenous and observable by the government. Individuals differ by their unobservable abilities, which simultaneously affect their disutility of labor and their cost of...