| 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.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics, Econometrics and Finance (General)
Authors
Tin Cheuk Leung, Hakki Yazici,
