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Is It Legitimate to Encourage Work Sharing?

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  • Maderner, Nina
  • Rochet, Jean-Charles

Abstract

A generalization of J. A. Mirrlees's (1971) income taxation model is formulated in which qualifications of workers are both endogenous and observable by the government. Individuals differ by their unobservable abilities, which simultaneously affect their disutility of labor and their cost of training. In general, the optimal tax schedule depends not only on income but also on its 'components,' i.e., wage rate (or qualification) and labor supply. The authors find conditions under which it is optimal to subsidize lower qualifications or to encourage work sharing. Copyright 1995 by The editors of the Scandinavian Journal of Economics.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 97 (1995)
Issue (Month): 4 (December)
Pages: 621-33

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Handle: RePEc:bla:scandj:v:97:y:1995:i:4:p:621-33

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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442

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Cited by:
  1. Robert Moffitt, 2006. "Welfare work Requirements with Paternalistic Government Preferences," Economic Journal, Royal Economic Society, vol. 116(515), pages F441-F458, November.
  2. Beaudry, Paul & Blackorby, Charles & Szalay, Dezso, 2006. "Taxes and Employment Subsidies in Optimal Redistribution Programs (Revised Version)," The Warwick Economics Research Paper Series (TWERPS) 779, University of Warwick, Department of Economics.
  3. Paul Beaudry & Charles Blackorby, 1998. "Taxes and Employment Subsidies in Optimal Redistribution Programs," NBER Working Papers 6355, National Bureau of Economic Research, Inc.
  4. Darío Maldonado, 2008. "Education policies and optimal taxation," International Tax and Public Finance, Springer, vol. 15(2), pages 131-143, April.
  5. CREMER, Helmuth & LOZACHMEUR, Jean-Marie & PESTIEAU, Pierre, . "Social security, retirement age and optimal income taxation," CORE Discussion Papers RP -1722, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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