Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7396072 | Central Bank Review | 2018 | 6 Pages |
Abstract
This paper studies optimal distribution of skills in an optimal income tax framework with convex skill constraints. The problem is cast as a social planning problem where a redistributive planner chooses how to distribute a given amount of aggregate skills across people. We find that optimal skill distribution is either perfectly equal or perfectly unequal, but an interior level of skill inequality is never optimal.
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Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics, Econometrics and Finance (General)
Authors
Tin Cheuk Leung, Hakki Yazici,