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Income Taxation in a Life Cycle Model with Human Capital

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  • Michael Keane

    () (School of Economics and ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales)

Abstract

This paper examines the effect of labor income taxation in life-cycle models where work experience builds human capital. In this case, the wage no longer equals the opportunity cost of time - which is, instead, the wage plus returns to work experience. This has a number of interesting consequences.

Suggested Citation

  • Michael Keane, 2011. "Income Taxation in a Life Cycle Model with Human Capital," Working Papers 201117, ARC Centre of Excellence in Population Ageing Research (CEPAR), Australian School of Business, University of New South Wales.
  • Handle: RePEc:asb:wpaper:201117
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    File URL: http://cepar.edu.au/media/48652/Income%20Taxation%20Life%20Cycle%20Model.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Andrea ALBANESE & Bart COCKX, 2015. "Permanent Wage Cost Subsidies for Older Workers. An Effective Tool for Increasing Working Time and Postponing Early Retirement?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2015006, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    2. Rupert, Peter & Zanella, Giulio, 2015. "Revisiting wage, earnings, and hours profiles," Journal of Monetary Economics, Elsevier, vol. 72(C), pages 114-130.
    3. Michael P. Keane, 2011. "Human Capital, Taxes and Labour Supply," The Economic Record, The Economic Society of Australia, vol. 87(s1), pages 37-44, September.
    4. Michael P. Keane, 2011. "Labor Supply and Taxes: A Survey," Journal of Economic Literature, American Economic Association, vol. 49(4), pages 961-1075, December.
    5. da Costa, Carlos E. & Pereira, Thiago, 2014. "On the efficiency of equal sacrifice income tax schedules," European Economic Review, Elsevier, vol. 70(C), pages 399-418.
    6. Giulio Zanella & Peter Rupert, 2010. "Revisiting Wage, Earnings, and Hours Profiles," 2010 Meeting Papers 1158, Society for Economic Dynamics.

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