Taxes and employment subsidies in optimal redistribution programs

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Taxes and employment subsidies in optimal red ...
Paul Beaudry
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Last edited by Open Library Bot
December 4, 2010 | History

Taxes and employment subsidies in optimal redistribution programs

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This paper characterizes an optimal redistribution program when taxation authorities: (1) are uninformed about individuals value of time in both market and non-market activities observe both market-income and time allocated to market employment, and (3) are utilitarian. Formally, the problem is a special case of a multidimensional screening problem with two dimensions of unobserved attributes. In contrast to much of the optimal income taxation literature, we show that optimal redistribution in this environment involves distorting market employment upwards for low net-income individuals (through negative marginal income taxes or employment subsidies) and distorting employment downward for high net-income individuals (through positive marginal income taxes). It is also shown that workfare is only part of an optimal program if certain individuals have not access to market employment.

Publish Date
Language
English
Pages
49

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Book Details


Edition Notes

"January 1998."

JEL no. D82, H21, H23.

Includes bibliographical references (p. 39-40).

Electronic access limited to Binghamton University faculty, staff and students for instructional and research purposes only.

Electronic version available via the Internet at the NBER World Wide Web site.

Published in
Cambridge, MA
Series
NBER working paper series -- working paper 6355, Working paper series (National Bureau of Economic Research) -- working paper no. 6355.

Classifications

Library of Congress
HB1 .W654 no. 6355

The Physical Object

Pagination
49 p. :
Number of pages
49

ID Numbers

Open Library
OL22404049M

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December 4, 2010 Edited by Open Library Bot Added subjects from MARC records.
December 10, 2009 Created by WorkBot add works page