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In this paper we allude to a novel role played by the non-linear income tax system in the presence of adverse selection in the labor market due to asymmetric information between workers and firms. We show that an appropriate choice of the tax schedule enables the government to affect the wage...
Persistent link: https://www.econbiz.de/10011289068
provide a novel decomposition of labor income tax formulas into a redistribution and an insurance component. The latter is … capital tax is non-zero and trades off redistribution and insurance against savings distortions. Our quantitative results … bound on optimal taxes: even for welfare functions that do not value redistribution, marginal tax rates are positive for all …
Persistent link: https://www.econbiz.de/10011280819
redistribution and impact the design of optimal tax policies. He focuses on two aspects: the relevant dimension over which relative …
Persistent link: https://www.econbiz.de/10011892338
We examine preferences for redistribution inherent in Swedish tax policy 1971-2012 using the inverse optimal tax …
Persistent link: https://www.econbiz.de/10011566489
The author reviews recent studies of how social status concerns influence individual preferences for redistribution and …
Persistent link: https://www.econbiz.de/10011816453
We examine preferences for redistribution inherent in Swedish tax policy 1971-2012 using the inverse optimal tax …
Persistent link: https://www.econbiz.de/10011559969
The purpose of this article is to integrate the class of preferences developed by Gul and Pesendorfer into the theory …
Persistent link: https://www.econbiz.de/10012240965
Specialized theoretical and empirical research should in principle be embedded in a unified framework that identifies the relevant interactions among different phenomena, enables an appropriate matching of policy instruments to objectives, and grounds normative analysis in individuals' utilities...
Persistent link: https://www.econbiz.de/10012174286
We study the joint design of nonlinear income and education taxes when the government pursues redistributive objectives. A key feature of our setup is that the ability type of an agent can affect both the costs and benefits of acquiring education. Market remuneration of agents depends on both...
Persistent link: https://www.econbiz.de/10013390911
Changing the income tax progressivity in labour markets with collective wage bargaining generates a trade-off. On the one hand, higher progressivity distorts individual labour supply decisions at the hours-of-work margin, on the other hand, it reduces unemployment by exerting downward pressure...
Persistent link: https://www.econbiz.de/10013142210