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Good Jobs, Bad Jobs and Redistribution

  • Lommerud, K.E.
  • Sandvik, B.
  • Straume, O.R.

We analyse the question of optimal taxation in a dual economy, when the government is concerned about the distribution of labour incom. Income inequality is caused by the presence of sunk capital investments, which creates a 'good jobs' sector due to the capture of quasi-rents by trade unions.

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Paper provided by Department of Economics, University of Bergen in its series Norway; Department of Economics, University of Bergen with number 1401.

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Length: 22 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:fth:bereco:1401
Contact details of provider: Postal: Department of Economics, University of Bergen Fosswinckels Gate 6. N-5007 Bergen, Norway
Phone: (+47)55589200
Fax: (+47)55589210
Web page: http://www.uib.no/econ/
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  23. Lommerud, Kjell Erik & Vagstad, Steinar, 2006. "Mommy tracks and public policy: on self-fulfilling prophecies and gender gaps in promotion
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  27. David Austen-Smith & Michael Wallerstein, 2003. "Redistribution in a Divided Society," Discussion Papers 1362, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  28. Eckhard Janeba, 2003. "Does Trade Increase Inequality when Skills are Endogenous?," Review of International Economics, Wiley Blackwell, vol. 11(5), pages 885-898, November.
  29. Fuest, Clemens & Huber, Bernd, 2000. "Is tax progression really good for employment? A model with endogenous hours of work," Labour Economics, Elsevier, vol. 7(1), pages 79-93, January.
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  37. Henrik Jacobsen Kleven & Peter Birch Sørensen, . "Labour Tax Reform, The Good Jobs and the Bad Jobs," EPRU Working Paper Series 99-01, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
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