This article surveys the economic theory that designs the optimal nonlinear income tax schedule that trades off the equity gains of a more progressive income tax schedule against the incentives to work less induced by such a more progressive income tax schedule. We take into account not only the...

In France, the coexistence of three expensive policies intended to reduce the labor cost, a general payroll tax cut on low-paid jobs, the Tax Credit for Competition and Employment and the Responsibility Pact announced in early 2014 is a source of complexity that makes the overall tax-benefit...

This paper characterizes optimal non-linear income taxation in an economy with a continuum of unobservable productivity levels and endogenous involuntary unemployment due to frictions in the labour markets. Redistributive taxation distorts labour demand and wages. Compared to their efficient...

[fre] Cet article étudie si la mise en place d’une allocation universelle pourrait réduire à la fois le chômage et les inégalités. La présence d’allocation universelle se traduit par davantage de progressivité dans le système fiscal, ce qui réduit la pression salariale exprimée...

We estimate the responses of gross labor income with respect to marginal and average net-of-tax rates in France over the period 2003–2006. We exploit a series of reforms to the income-tax and payroll-tax schedules affecting individuals who earn less than twice the minimum wage. Our estimate...

We characterize optimal redistributive taxation when individuals are heterogeneous in their skills and their values of non-market activities. Search-matching frictions on the labor markets create unemployment. Wages, labor demand and participation are endogenous. Average tax rates are increasing...

This paper characterizes the optimal redistributive tax schedule in a search–matching framework where (voluntary) nonparticipation and (involuntary) unemployment are endogenous and wages are determined by proportional bargaining à la Kalai. The optimal employment tax rate is given by an...

In this paper, I build a wage bargaining model to study the consequences of unemployment insurance and unemployment assistance on unemployment. I show that indexing the unemployment insurance benefit on the last wage earned increase the level of unemployment. I describe necessary conditions to...

We contribute to the debate on skill-biased technical change by studying the long-run dynamics of skill premia in an endogenous growth model in which technical change can be directed alternately towards different factors. We show that R&D resources tend to be directed alternately towards...