We use Frenche household data to estimate a structural model of female labor supply and use of paid child care outside the home. Child care costs are found to have little impact on the labor market perticipation decision of mothers. The model is used to study various policy issues. The influence...

We study optimal taxation in the general extensive model: the only decision of the participants in the economy is to choose between working (full time) or staying inactive. People differ in their productivities and in other features which determine their work opportunity costs. The qualitative...

Heterogeneity is likely to be an important determinant of the shape of optimal tax schemes. This article addresses the issue in a model à la Mirrlees with a continuum of agents. The agents differ in their productivities and opportunity costs of work, but their labor supplies depend only on a...