Both raw intuition and past experience suggest that the success of an employment
guarantee scheme (EGS) in safeguarding the welfare of the poor depends both on the wage …

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 …

This article presents a survey of how optimal income taxation is influenced by labour market
considerations. We begin with the standard supply-side optimal income tax model of …

This paper characterizes the optimal redistributive tax schedule in a search–matching
framework where (voluntary) nonparticipation and (involuntary) unemployment are …

A two-region economy consists of a given but different number of immobile workers in each
region, and a given number of mobile firms. Firms create jobs where they locate, but there is …

This paper studies optimal income taxation in an environment where matching frictions
generate a trade-off for workers between high wages and low unemployment risk. A higher …

This paper characterizes the optimal redistributive tax schedule in a matching
unemployment framework where (voluntary) nonparticipation and (involuntary) …

Over the past two decades, changes in income volatility and its sources have received
increasing attention (Blundell, Pistaferri, and Preston 2004; Gottschalk and Moffit 1994; …

This paper studies the role of monitoring as an instrument to improve the redistributive and
insurance properties of an optimal tax-transfer system. Workers of different skills can choose …

We present a survey of key results from second‐best optimal redistribution theory and their
implications for tax‐transfer policy. The core results include the Corlett‐Hague theorem, the …