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Is It Legitimate to Encourage Work Sharing?

Author

Listed:
  • Maderner, N.
  • Rochet, J.C.

Abstract

We study a generalization of Mirrlees' income taxation model in which qualifications of workers are both endogenous and observable by the government. Individuals differ by their inobservable abilities, which affect simultaneously their disutility of labor and their cost of training. In general the optimal tax schedule does not only depend on income but also on its "components", namely wage rate (or qualification) and labor supply. We find conditions under which it is optimal to subsidize lower qualifications or to encourage work sharing.

Suggested Citation

  • Maderner, N. & Rochet, J.C., 1996. "Is It Legitimate to Encourage Work Sharing?," Papers 96.404, Toulouse - GREMAQ.
  • Handle: RePEc:fth:gremaq:96.404
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    Citations

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    Cited by:

    1. Paul Beaudry & Charles Blackorby & Dezsö Szalay, 2009. "Taxes and Employment Subsidies in Optimal Redistribution Programs," American Economic Review, American Economic Association, vol. 99(1), pages 216-242, March.
    2. Robert Moffitt, 2006. "Welfare work Requirements with Paternalistic Government Preferences," Economic Journal, Royal Economic Society, vol. 116(515), pages 441-458, November.
    3. 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.

    More about this item

    Keywords

    LABOUR MARKET; MANPOWER; HUMAN RESOURCES; UNEMPLOYMENT; INCOME;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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