Abstract
We introduce the notion of social mobility into an optimal income tax model. This is done by allowing earning abilities to be partly innate and partly acquired through investments in human capital (education). The implications for the optimal re-distributive policy are studied.
Original language | English |
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Pages (from-to) | 1915-1925 |
Number of pages | 11 |
Journal | European Economic Review |
Volume | 49 |
Issue number | 7 |
DOIs | |
State | Published - 1 Oct 2005 |
Keywords
- Education
- Inequality
- Mobility
- Optimal taxation
- Re-distribution
ASJC Scopus subject areas
- Finance
- Economics and Econometrics