Citation

Discussion Paper Details

Please find the details for DP3002 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Optimal Labour Taxation and Search

Author(s): Jan Boone and A Lans Bovenberg

Publication Date: October 2001

Keyword(s): labour market, optimal tax system and search model

Programme Area(s): Labour Economics and Public Economics

Abstract: This Paper explores the optimal role of the tax system in alleviating labour-market imperfections and raising revenue. For this purpose, the standard search model of the labour market is extended by introducing scarce entrepreneurial talent and arbitrage between the supply and demand. We study how these extensions affect the following two major implications of the standard model: (1) only the ad valorem component of the wage tax should be employed to raise revenue; (2) the optimal tax system should not distort labour-market tightness.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3002

Bibliographic Reference

Boone, J and Bovenberg, A. 2001. 'Optimal Labour Taxation and Search'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3002