Webbläsaren som du använder stöds inte av denna webbplats. Alla versioner av Internet Explorer stöds inte längre, av oss eller Microsoft (läs mer här: * https://www.microsoft.com/en-us/microsoft-365/windows/end-of-ie-support).

Var god och använd en modern webbläsare för att ta del av denna webbplats, som t.ex. nyaste versioner av Edge, Chrome, Firefox eller Safari osv.

Thomas Fischer . Foto

Thomas Fischer

Docent

Thomas Fischer . Foto

Shaping inequality: Progressive taxation under human capital accumulation

Författare

  • Danial Ali Akbari
  • Thomas Fischer

Summary, in English

This paper develops a model of human capital accumulation with on-the-job learning subject to obsolescence risk. The model analytically characterizes trade-offs of reforming the level of income tax progressivity and matches well income inequality in the US. An enriched version is used to quantitatively investigate optimal tax progressivity in the US. In contrast to standard models with exogenous income which suggest that progressivity is too low, accounting for endogenous human capital accumulation would call for lower tax progressivity. While optimal from a utilitarian perspective, such a reform mostly benefits individuals at the top 10\% of the earnings distribution, however.

Avdelning/ar

  • Nationalekonomiska institutionen

Publiceringsår

2021

Språk

Engelska

Sidor

1-74

Dokumenttyp

Working paper

Förlag

SSRN

Ämne

  • Economics

Nyckelord

  • income inequality
  • fat tails
  • progressive income taxation
  • human capital accumulation
  • D3
  • C46
  • E24
  • J24
  • H2

Aktiv

Published