Income taxation in a frictional labor market

• 成果类型: Article
• 署名作者: Shapiro, J
• 署名单位: Pompeu Fabra University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(03)00019-7
• 发表日期: 2004
• 页码: 465-479
• 关键词: wage posting; Optimal income taxation; search

摘要

A new model of wage dispersion is used to examine welfare aspects of income taxation. The model retains the dynamics of wage posting models while exogenizing search effort, therefore allowing more insight into policy issues. The results highlight effects that standard analyses do not take into account. The optimal income tax should depend on an incidence effect between workers and firms. This incidence effect arises from firms trying to lower wages as much as possible. An employment tax proves, in certain cases, to be the best method to encourage labor force participation. (C) 2003 Elsevier B.V. All rights reserved.