Optimal Redistributive Taxation in a Search Equilibrium Model

Arbeitspapier

This paper characterizes optimal non-linear income taxation in an economy with a continuum of unobservable productivity levels and endogenous involuntary unemployment due to frictions in the labor markets. Redistributive taxation distorts labor demand and wages. Compared to their efficient values, gross wages, unemployment and participation are lower. Average tax rates are increasing. Marginal tax rates are positive, even at the top. Finally, numerical simulations suggest that redistribution is much more important in our setting than in a comparable Mirrlees (1971) setting.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 1460

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Unemployment: Models, Duration, Incidence, and Job Search ; Taxation and Subsidies: Efficiency; Optimal Taxation ; Asymmetric and Private Information; Mechanism Design ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
• Thema: optimal income taxation ; unemployment ; wage bargaining ; matching ; Einkommensteuer ; Einkommensumverteilung ; Optimale Besteuerung ; Arbeitslosigkeit ; Lohnverhandlungen ; Matching ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Hungerbühler, Mathias ; Lehmann, Etienne ; Parmentier, Alexis ; van der Linden, Bruno
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2005

Weitere Informationen

• Handle: http://hdl.handle.net/10419/20759
• Letzte Aktualisierung: 20.09.2024, 08:24 MESZ