Arbeitspapier

Optimal participation taxes

Addressing extensive labour supply responses, the literature has established a case for larger transfers to the working poor than to even poorer non-working people. This paper casts new light on this result. I argue that the result hinges crucially on the labour supply responses of people in income brackets above that of the working poor. Then distinguishing between more and less poor working people, I show that if a single working type faces a negative tax, it is the poorer one. I extend the analysis by endogenising wages and show that key conditions will be of the same form as with exogenous wages.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 3941

Klassifikation
Wirtschaft
Taxation and Subsidies: Efficiency; Optimal Taxation
Thema
Taxation
Subsidies and Revenue
Efficiency
Optimal Taxation
Arbeitsangebot
Niedriglohn
Niedrigeinkommen
Optimale Besteuerung
Theorie

Ereignis
Geistige Schöpfung
(wer)
Vidar, Christiansen
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2012

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Vidar, Christiansen
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2012

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