Variable Earnings and Nonlinear Taxation
We explore the interaction between two facts. The first is that income is variable; the second is that the tax and transfer system transforms before tax income into after tax income in highly non-linear ways. The effect is to penalize (and reward) income variability in a manner which is both substantial and capricious.
|Date of creation:||Jun 1983|
|Publication status:||published as Moffitt, Robert and Michael Rothschild. "Variable Earnings and Nonlinear Taxation," Journal of Human Resources, Vol. 22, No. 3, Summer 1987, pp. 405- 421.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
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- Lillard, Lee A & Willis, Robert J, 1978.
"Dynamic Aspects of Earning Mobility,"
Econometric Society, vol. 46(5), pages 985-1012, September.
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- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September. Full references (including those not matched with items on IDEAS)
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