This paper evaluates the consequences of minimum wage (MW) and earned income tax credit (EITC) in a model with … heterogeneous costs of investment in human capital. Our model studies the effects of a MW and an EITC on employment, productivity … an EITC exclusively for Type O individuals. Some of the best effects of each policy would therefore be obtained and some …

In this paper we characterize the optimal linear and piecewise linear EITC schedule. In the linear framework we … derive in a lower optimal EITC. For the piecewise linear schedule, we show that in most cases the optimal schedule is a … optimal EITC compared to changes in the wage variance. Finally, we show that the main impact of an increased minimum wage on …

Governments implementing an Earned Income Tax Credit (EITC) aim at increasing Working Poor's propensity to work, in … order to alleviate poverty. If this goal is attained in the long-run: shall the optimal EITC increase or decrease? We deal … participation elasticity is endogenous, the optimal long-run EITC decreases. However, if we add endogenous intensive margin …

, effort) and extensive (participation) margins. It shows that an Earned Income Tax Credit (EITC) with negative marginal taxes …This paper studies optimal non-linear income taxation in a model with labor supply responses at the intensive (hours … along the income distribution and, second, social concerns for redistribution from the poor to the very poor are …