Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5059471 | Economics Letters | 2013 | 5 Pages |
Abstract
In this paper we demonstrate that supplementing the optimal non-linear income tax system with a binding maximum wage rule attains a Pareto improvement, by serving to mitigate the mimicking incentives of the high-skill individuals without entailing distortions.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Tomer Blumkin, Efraim Sadka, Yotam Shem-Tov,