Optimal redistribution with labor supply dependent productivity
International Tax and Public Finance, 2026 (SSCI, Scopus)
- Yayın Türü: Makale / Tam Makale
- Basım Tarihi: 2026
- Doi Numarası: 10.1007/s10797-026-09981-5
- Dergi Adı: International Tax and Public Finance
- Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, IBZ Online, ABI/INFORM, EconLit, Public Affairs Index, Pharma Collection (ProQuest)
- Anahtar Kelimeler: Optimal redistribution, Productivity, Working hours
- Orta Doğu Teknik Üniversitesi Adresli: Evet
Özet
We study optimal nonlinear income taxation when productivity depends negatively on labor supply (labor-supply-dependent productivity, LSDP). Relative to a benchmark model with fixed productivities, we find that LSDP leads to higher optimal marginal tax rates, especially for higher-income individuals, and greater redistribution. The key mechanism is that, under LSDP, marginal taxation becomes a more effective screening instrument.