Does an income tax harm economic efficiency more the more progressive it is? Public economics provides a strong case for a definite "yes". But at least three forces may pull in the other direction. First, low-wage workers may on average have more elastic labour supply schedules than high-wage...

In 1988, an early retirement program (AFP) was introduced in Norway for the 66-year-old. Since then, AFP has gradually been extended and by now it covers workers aged 62-66. In this paper we employ a multinominal logit model to study the transition between states in the labour market. The model...