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Tax Progressivity, Performance Pay and Search Frictions

Author

Listed:
  • Susanne Forstner

    (Institute for International Economic Studies)

  • Arpad Abraham

    (European University Institute)

Abstract

Again, this will lead to both lower cross-sectional and longitudinal wage dispersion, thus increasing insurance against income risk. The present paper explores these channels of impact of tax progressivity on income inequality and on (production) efficiency both theoretically and quantitatively.

Suggested Citation

  • Susanne Forstner & Arpad Abraham, 2014. "Tax Progressivity, Performance Pay and Search Frictions," 2014 Meeting Papers 1047, Society for Economic Dynamics.
    • Handle: RePEc:red:sed014:1047
    as

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