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Is It Legitimate to Encourage Work Sharing?

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  • 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.

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Bibliographic Info

Paper provided by Toulouse - GREMAQ in its series Papers with number 96.404.

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Length: 17 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:fth:gremaq:96.404

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Keywords: LABOUR MARKET; MANPOWER; HUMAN RESOURCES; UNEMPLOYMENT; INCOME;

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Cited by:
  1. Beaudry, Paul & Blackorby, Charles, 2004. "Taxes And Employment Subsidies In Optimal Redistribution Programs," The Warwick Economics Research Paper Series (TWERPS) 708, University of Warwick, Department of Economics.
  2. Robert Moffitt, 2005. "Welfare Work Requirements with Paternalistic Government Preferences," Economics Working Paper Archive 534, The Johns Hopkins University,Department of Economics, revised Jun 2006.
  3. Helmuth Cremer & Jean-Marie Lozachmeur & Pierre Pestieau, 2002. "Social Security, Retirement Age and Optimal Income Taxation," CESifo Working Paper Series 693, CESifo Group Munich.
  4. Darío Maldonado, 2008. "Education policies and optimal taxation," International Tax and Public Finance, Springer, vol. 15(2), pages 131-143, April.
  5. 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.

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