) nonparticipation and (involuntary) unemployment are endogenous. The optimal employment tax rate is given by an inverse employment … elasticity rule. This rule depends on the global response of the employment rate, which depends not only on the participation …. For plausible values of the parameters, our matching environment induces much lower employment tax rates than the usual …

(voluntary) nonparticipation and (involuntary) unemployment. The optimal employment tax rate is given by an inverse employment … elasticity rule. This rule depends on the global response of the employment rate, which depends not only on the participation … responses. For plausible parameters, our matching environment induces much lower employment tax rates than the usual competitive …

This paper characterizes the optimal income taxation when individuals respond along both the intensive and extensive …