minimum wage causes more unemployment, but also leads to more skill formation as unemployment is concentrated on low … gains of more skill formation outweigh the social welfare losses of increased unemployment. Using a highly conservative …

This paper characterizes the optimal redistributive tax schedule in a matching unemployment framework with endogenous … (voluntary) nonparticipation and (involuntary) unemployment. The optimal employment tax rate is given by an inverse employment … responses. For plausible parameters, our matching environment induces much lower employment tax rates than the usual competitive …

. Both marginal tax rates are of ambiguous sign. The tax systems' effects on the wage formation and the unemployment rates …

We integrate social exclusion, operationalized in terms of long-term unemployment, into the theory of optimal … redistributive taxation. Our results show how an optimal mix of education policy, public employment, and support to the unemployed …, in conjunction with optimal income taxation, contributes to redistribution and reduced long-term unemployment. The second …

This paper revisits the normative properties of search-matching economies when homogeneous workers have concave utility … optima, non-linear income taxation is a key complement to unemployment insurance. According to the level of the workers …

This paper revisits the normative properties of search-matching economies when homogeneous workers have concave utility … optima, non-linear income taxation is a key complement to unemployment insurance. According to the level of the workers …

educational type with high consumption value and low effort costs. This increases the skill mismatch and aggregate unemployment in …

We study the joint design of nonlinear income and education taxes when the government pursues redistributive objectives … education. Market remuneration of agents depends on both their innate ability type and their educational choices. Our focus is … on income and education and shed light on the reasons for it and mechanisms through which it is done. We show how and why …