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OptimalWage Redistribution in the Presence of Adverse Selection in the Labor Market
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics, Uppsala Center for Fiscal Studies.
Department of Economics, Ben Gurion University, Israel.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics, Uppsala Center for Fiscal Studies.
2014 (English)Report (Other academic)
Abstract [en]

In this paper we allude to a novel role played by the non-linear income tax system in the presence of adverse selection in the labor market due to asymmetric information between workers and firms. We show that an appropriate choice of the tax schedule enables the government to affect the wage distribution by controlling the transmission of information in the labor market. This represents an additional channel through which the government can foster the pursuit of its redistributive goals.

Place, publisher, year, edition, pages
Uppsala, 2014. , 17 p.
Series
Working paper / Uppsala Center for Fiscal Studies, Uppsala University, 2014:8
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:uu:diva-229201OAI: oai:DiVA.org:uu-229201DiVA: diva2:736147
Available from: 2014-08-05 Created: 2014-08-05 Last updated: 2014-08-05Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
  • modern-language-association
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf