Income taxation with intergenerational mobility: Can higher inequality lead to less progression?

Tomer Blumkin, Efraim Sadka

Research output: Contribution to journalArticlepeer-review

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 languageEnglish
Pages (from-to)1915-1925
Number of pages11
JournalEuropean Economic Review
Volume49
Issue number7
DOIs
StatePublished - Oct 2005

Keywords

  • Education
  • Inequality
  • Mobility
  • Optimal taxation
  • Re-distribution

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