Income Redistribution and Risky Occupational Choices
AbstractI analyze the effect of linear taxation on discrete choices between risky occupations. In the basic model, two occupations differ in the magnitude of income risks, and citizens differ in their expected productivity in one of the occupations. I derive sufficient conditions under which income redistribution encourages a greater part of the population to choose the riskier occupation associated with higher expected income. The results are then generalized to an arbitrary number of groups of citizens facing an arbitrary number of discrete occupational choices belonging to the same linear distribution class.
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Bibliographic InfoArticle provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.
Volume (Year): topics.2 (2002)
Issue (Month): 1 ()
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Web page: http://www.degruyter.com
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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- Clemens, Christiane, 2004. "Entrepreneurship and Growth - An Overlapping Generations Approach -," Diskussionspapiere der Wirtschaftswissenschaftlichen FakultÃ¤t der Leibniz UniversitÃ¤t Hannover dp-304, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- Kanniainen, Vesa & Poutvaara, Panu, 2007.
"Imperfect Transmission of Tacit Knowledge and Other Barriers to Entrepreneurship,"
IZA Discussion Papers
2859, Institute for the Study of Labor (IZA).
- Vesa Kanniainen & Panu Poutvaara, 2007. "Imperfect Transmission of Tacit Knowledge and other Barriers to Entrepreneurship," CESifo Working Paper Series 2053, CESifo Group Munich.
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