The distributional impact of proposed reforms plays a central role in public debates around tax and transfer policy. We show that accounting for realistic patterns of mobility in employment, earnings and household circumstances over the life-cycle greatly affects our assessment of the...

We study the implications of limited commitment on education and tax policies chosen by benevolent governments. Individual wages are determined by both innate abilities and education levels. Consistent with real world practices, the government can decide to subsidize different levels of...