Sharing the sacrifice, minimizing the pain: Optimal wage reductions
Author
Abstract
Suggested Citation
DOI: 10.1016/j.econlet.2020.109503
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Henrik Jacobsen Kleven & Claus Thustrup Kreiner & Emmanuel Saez, 2009.
"The Optimal Income Taxation of Couples,"
Econometrica, Econometric Society, vol. 77(2), pages 537-560, March.
- Saez, Emmanuel & Kreiner, Claus Thustrup & Kleven, Henrik, 2006. "The Optimal Income Taxation of Couples," CEPR Discussion Papers 5978, C.E.P.R. Discussion Papers.
- Henrik Jacobsen Kleven & Claus Thustrup Kreiner & Emmanuel Saez, 2006. "The Optimal Income Taxation of Couples," NBER Working Papers 12685, National Bureau of Economic Research, Inc.
- Olafsdottir, Katrin, 2020. "A deep recession came with deep wage cuts," Economics Letters, Elsevier, vol. 189(C).
- Weinzierl, Matthew, 2014.
"The promise of positive optimal taxation: normative diversity and a role for equal sacrifice,"
Journal of Public Economics, Elsevier, vol. 118(C), pages 128-142.
- Matthew Weinzierl, 2012. "The Promise of Positive Optimal Taxation: Normative Diversity and a role for Equal Sacrifice," NBER Working Papers 18599, National Bureau of Economic Research, Inc.
- Keaton S. Miller & Amil Petrin & Robert Town & Michael Chernew, 2019. "Optimal Managed Competition Subsidies," NBER Working Papers 25616, National Bureau of Economic Research, Inc.
- Daniel Kahneman & Amos Tversky, 2013.
"Prospect Theory: An Analysis of Decision Under Risk,"
World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127,
World Scientific Publishing Co. Pte. Ltd..
- Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
- Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
- John A. List, 2004.
"Neoclassical Theory Versus Prospect Theory: Evidence from the Marketplace,"
Econometrica, Econometric Society, vol. 72(2), pages 615-625, March.
- John A. List, 2003. "Neoclassical Theory Versus Prospect Theory: Evidence from the Marketplace," NBER Working Papers 9736, National Bureau of Economic Research, Inc.
- John List, 2004. "Neoclassical theory versus prospect theory: Evidence from the marketplace," Framed Field Experiments 00174, The Field Experiments Website.
- Jan-Emmanuel De Neve & Christian Krekel & George Ward, 2019. "Employee wellbeing, productivity and firm performance," CEP Discussion Papers dp1605, Centre for Economic Performance, LSE.
- Jan-Emmanuel De Neve & Christian Krekel & George Ward, 2019. "Employee wellbeing: the impact on productivity and firm performance," CentrePiece - The magazine for economic performance 556, Centre for Economic Performance, LSE.
- Mirrlees, J. A., 1976.
"Optimal tax theory : A synthesis,"
Journal of Public Economics, Elsevier, vol. 6(4), pages 327-358, November.
- J. A. Mirrlees, 1976. "Optimal Tax Theory: A Synthesis," Working papers 176, Massachusetts Institute of Technology (MIT), Department of Economics.
- repec:eee:labchp:v:2:y:1986:i:c:p:789-848 is not listed on IDEAS
- Emmanuel Saez, 2001.
"Using Elasticities to Derive Optimal Income Tax Rates,"
The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(1), pages 205-229.
- Emmanuel Saez, 2000. "Using Elasticities to Derive Optimal Income Tax Rates," NBER Working Papers 7628, National Bureau of Economic Research, Inc.
- Nicholas C. Barberis, 2013. "Thirty Years of Prospect Theory in Economics: A Review and Assessment," Journal of Economic Perspectives, American Economic Association, vol. 27(1), pages 173-196, Winter.
- Rees, Albert, 1993. "The Role of Fairness in Wage Determination," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 243-252, January.
- Robert E. Hall, 2005. "Employment Fluctuations with Equilibrium Wage Stickiness," American Economic Review, American Economic Association, vol. 95(1), pages 50-65, March.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Mukhtar A. Kassem & Afiqah R. Radzi & Asankha Pradeep & Mohammed Algahtany & Rahimi A. Rahman, 2023. "Impacts and Response Strategies of the COVID-19 Pandemic on the Construction Industry Using Structural Equation Modeling," Sustainability, MDPI, vol. 15(3), pages 1-24, February.
- Luciana C. Fiorini & Wilfredo L. Maldonado, 2022.
"Labor Supply in Pandemics Environments: An Aggregative Games Approach,"
Working Papers, Department of Economics
2022_18, University of São Paulo (FEA-USP).
- Luciana C. Fiorini & Wilfredo L. Maldonado, 2022. "Labor Supply in Pandemic Environments: An Aggregative Games Approach," Economics Discussion / Working Papers 22-14, The University of Western Australia, Department of Economics.
- Afiqah R. Radzi & Rahimi A. Rahman & Saud Almutairi, 2022. "Modeling COVID-19 Impacts and Response Strategies in the Construction Industry: PLS–SEM Approach," IJERPH, MDPI, vol. 19(9), pages 1-25, April.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Shoshan, Vered & Hazan, Tamir & Plonsky, Ori, 2023. "BEAST-Net: Learning novel behavioral insights using a neural network adaptation of a behavioral model," OSF Preprints kaeny, Center for Open Science.
- Bierbrauer Felix J., 2016. "Effizienz oder Gerechtigkeit?: Ungleiche Einkommen, ungleiche Vermögen und Optimale Steuern," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 17(1), pages 2-24, April.
- Golosov, Mikhail & Troshkin, Maxim & Tsyvinski, Aleh & Weinzierl, Matthew, 2013.
"Preference heterogeneity and optimal capital income taxation,"
Journal of Public Economics, Elsevier, vol. 97(C), pages 160-175.
- Golosov, Mikhail & Weinzierl, Matthew & Tayvinski, Aleh, 2010. "Preference heterogeneity and optimal capital income taxation," LSE Research Online Documents on Economics 58179, London School of Economics and Political Science, LSE Library.
- Mikhail Golosov & Aleh Tayvinski & Matthew Weinzierl, 2010. "Preference Heterogeneity and Optimal Capital Income Taxation," STICERD - Public Economics Programme Discussion Papers 04, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Matthew Weinzierl & Aleh Tsyvinski & Mikhail Golosov, 2010. "Preference Heterogeneity and Optimal Capital Income Taxation," 2010 Meeting Papers 748, Society for Economic Dynamics.
- Mikhail Golosov & Maxim Troshkin & Aleh Tsyvinski & Matthew Weinzierl, 2010. "Preference Heterogeneity and Optimal Capital Income Taxation," NBER Working Papers 16619, National Bureau of Economic Research, Inc.
- Driscoll, John C. & Holden, Steinar, 2014.
"Behavioral economics and macroeconomic models,"
Journal of Macroeconomics, Elsevier, vol. 41(C), pages 133-147.
- John C. Driscoll & Steinar Holden, 2014. "Behavioral Economics and Macroeconomic Models," Finance and Economics Discussion Series 2014-43, Board of Governors of the Federal Reserve System (U.S.).
- John C. Driscoll & Steinar Holden, 2014. "Behavioral Economics and Macroeconomic Models," CESifo Working Paper Series 4785, CESifo.
- Lehmann, Etienne & Parmentier, Alexis & Van Der Linden, Bruno, 2011.
"Optimal income taxation with endogenous participation and search unemployment,"
Journal of Public Economics, Elsevier, vol. 95(11), pages 1523-1537.
- Etienne, LEHMANN & Alexis, PARMENTIER & Bruno, VAN DER LINDEN, 2008. "Optimal income taxation with endogenous participation and search unemployment," Discussion Papers (ECON - Département des Sciences Economiques) 2008036, Université catholique de Louvain, Département des Sciences Economiques.
- Etienne Lehmann & Alexis Parmentier & Bruno Van der Linden, 2011. "Optimal Income Taxation with Endogenous Participation and Search Unemployment," CESifo Working Paper Series 3324, CESifo.
- Etienne Lehmann & Alexis Parmentier & Bruno van Der Linden, 2011. "Optimal income taxation with endogenous participation and search unemployment," Post-Print hal-02877975, HAL.
- Etienne Lehmann & Alexis Parmentier & Bruno van der Linden, 2008. "Optimal Income Taxation with Endogenous Participation and Search Unemployment," IDEP Working Papers 0805, Institut d'economie publique (IDEP), Marseille, France, revised 15 Sep 2008.
- Etienne Lehmann & Alexis Parmentier & Bruno Vanderlinden, 2011. "Optimal income taxation with endogenous participation and search unemployment," Post-Print hal-01248156, HAL.
- Etienne Lehmann & Alexis Parmentier & Bruno Van Der Linden, 2008. "Optimal Income Taxation with Endogenous Participation and Search Unemployment," Documents de recherche 08-16, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
- Lehmann, Etienne & Parmentier, Alexis & Van der Linden, Bruno, 2008. "Optimal Income Taxation with Endogenous Participation and Search Unemployment," IZA Discussion Papers 3804, Institute of Labor Economics (IZA).
- Etienne LEHMANN & Alexis PARMENTIER & Bruno VAN DER LINDEN, 2009. "Optimal Income Taxation with Endogenous Participation and Search Unemployment," Working Papers 2009-01, Center for Research in Economics and Statistics.
- Weinzierl, Matthew, 2014.
"The promise of positive optimal taxation: normative diversity and a role for equal sacrifice,"
Journal of Public Economics, Elsevier, vol. 118(C), pages 128-142.
- Matthew Weinzierl, 2012. "The Promise of Positive Optimal Taxation: Normative Diversity and a role for Equal Sacrifice," NBER Working Papers 18599, National Bureau of Economic Research, Inc.
- Robin Jessen & Maria Metzing & Davud Rostam-Afschar, 2017.
"Optimal Taxation under Different Concepts of Justness,"
SOEPpapers on Multidisciplinary Panel Data Research
953, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Jessen, Robin & Metzing, Maria & Rostam-Afschar, Davud, 2018. "Optimal Taxation Under Different Concepts of Justness," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181612, Verein für Socialpolitik / German Economic Association.
- Jessen, Robin & Metzing, Maria & Rostam-Afschar, Davud, 2017. "Optimal taxation under different concepts of justness," Hohenheim Discussion Papers in Business, Economics and Social Sciences 27-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
- Jessen, Robin & Metzing, Maria & Rostam-Afschar, Davud, 2017. "Optimal taxation under different concepts of justness," Discussion Papers 2017/26, Free University Berlin, School of Business & Economics.
- Jessen, Robin & Metzing, Maria & Rostam-Afschar, Davud, 2018. "Optimal taxation under different concepts of justness," Ruhr Economic Papers 762, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
- OBARA, Takuya, 2016. "Differential Income Taxation and Tiebout Sorting," CCES Discussion Paper Series 64_v2, Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University.
- Mikhail Golosov & Aleh Tsyvinsky & Matthew Weinzierl, 2010.
"Preference Heterogeneity and Optimal Capital Taxation,"
STICERD - Public Economics Programme Discussion Papers
07, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Golosov, Mikhail & Weinzierl, Matthew & Tsyvinsky, Aleh, 2010. "Preference heterogeneity and optimal capital taxation," LSE Research Online Documents on Economics 58180, London School of Economics and Political Science, LSE Library.
- Moshe Levy, 2022. "An evolutionary explanation of the Allais paradox," Journal of Evolutionary Economics, Springer, vol. 32(5), pages 1545-1574, November.
- Amedeo Piolatto & Gwenola Trotin, 2016.
"Optimal Income Tax Enforcement under Prospect Theory,"
Journal of Public Economic Theory, Association for Public Economic Theory, vol. 18(1), pages 29-41, February.
- Gwenola Trotin & Amedeo Piolatto, 2011. "Optimal tax enforcement under prospect theory," Working Papers. Serie AD 2011-24, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Amedeo Piolatto & Gwenola Trotin, 2011. "Optimal tax enforcement under prospect theory," Working Papers 2011/29, Institut d'Economia de Barcelona (IEB).
- Eduard Marinov, 2017. "The 2017 Nobel Prize in Economics," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 117-159.
- Committee, Nobel Prize, 2017. "Richard H. Thaler: Integrating Economics with Psychology," Nobel Prize in Economics documents 2017-1, Nobel Prize Committee.
- Ian M. McDonald, 2021. "A Keynesian model of aggregate demand in the long‐run," Metroeconomica, Wiley Blackwell, vol. 72(3), pages 442-459, July.
- Felix Bierbrauer, 2016. "Effizienz oder Gerechtigkeit? Ungleiche Einkommen, ungleiche Vermögen und die Theorie der optimalen Besteuerung," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2016_03, Max Planck Institute for Research on Collective Goods.
- Robertas Zubrickas, 2022. "Loss aversion, labor supply, and income taxation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(2), pages 579-598, April.
- Tomer Blumkin & Yoram Margalioth & Efraim Sadka, 2010. "Taxing Children: The Re-distributive Role of Child Benefits - Revisited," CESifo Working Paper Series 2970, CESifo.
- Charles-Cadogan, G., 2018. "Losses loom larger than gains and reference dependent preferences in Bernoulli’s utility function," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 220-237.
- Ayaz, Mehmet & Fricke, Lea & Fuest, Clemens & Sachs, Dominik, 2023.
"Who should bear the burden of COVID-19 related fiscal pressure? An optimal income taxation perspective,"
European Economic Review, Elsevier, vol. 153(C).
- Mehmet Ayaz & Lea Fricke & Clemens Fuest & Dominik Sachs, 2021. "Who Should Bear the Burden of Covid-19 Related Fiscal Pressure? An Optimal Income Taxation Perspective," ifo Working Paper Series 358, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
- Mehmet Ayaz & Lea Fricke & Clemens Fuest & Dominik Sachs, 2021. "Who Should Bear the Burden of Covid-19 Related Fiscal Pressure? An Optimal Income Taxation Perspective," CESifo Working Paper Series 9420, CESifo.
- Rahman, Arifur & Crouch, Geoffrey I. & Laing, Jennifer H., 2018. "Tourists' temporal booking decisions: A study of the effect of contextual framing," Tourism Management, Elsevier, vol. 65(C), pages 55-68.
More about this item
Keywords
Optimal taxes; Wage reductions; Equity; Labor; Higher education; COVID-19;All these keywords.
JEL classification:
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
- L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
- I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:196:y:2020:i:c:s0165176520303086. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.