scholarly journals Optimal tax progressivity: an analytical framework

2014 ◽  
Author(s):  
Kjetil Storesletten ◽  
Jonathan Heathcote ◽  
Giovanni L. Violante
Keyword(s):  
Analytical Framework ◽  
Tax Progressivity ◽  
Optimal Tax

scholarly journals Optimal Tax Progressivity: An Analytical Framework

2014 ◽  
Author(s):  
Jonathan Heathcote ◽  
Kjetil Storesletten ◽  
Giovanni Violante
Keyword(s):  
Analytical Framework ◽  
Tax Progressivity ◽  
Optimal Tax

scholarly journals Optimal Tax Progressivity: An Analytical Framework

2016 ◽  
Author(s):  
Jonathan Heathcote ◽  
Kjetil Storesletten ◽  
Giovanni L. Violante
Keyword(s):  
Analytical Framework ◽  
Tax Progressivity ◽  
Optimal Tax

Wage Discrimination and Tax Progressivity

2021 ◽  
pp. 1-32
Author(s):  
INSOOK LEE
Keyword(s):  
Panel Data ◽  
Income Inequality ◽  
Empirical Analysis ◽  
Interaction Effect ◽  
Wage Discrimination ◽  
Tax Progressivity ◽  
Optimal Tax ◽  
The Empirical Analysis ◽  
Different Levels

How does wage discrimination affect tax progressivity? To address this, optimal tax progressivity is characterized in an economy where individuals have different levels of ability and some of the individuals face wage discrimination. A decrease in wage discrimination reduces optimal tax progressivity, while an increase in ability inequality raises it. When pre-tax income inequality increases, tax progressivity can decrease. Moreover, interaction effect on tax progressivity of wage discrimination and ability inequality is negative. These findings hold whether social planners or voters decide tax progressivity. The empirical analysis with panel data of Organisation for Economic Co-operation and Development economies provides evidence supportive of the theoretical findings.

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