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Help the low skilled or let the hardworking thrive? A study of fairness in optimal income taxation

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  • FLEURBAEY, Marc
  • MANIQUET, François
Abstract
In a model where agents have unequal wages and heterogeneous preferences, we study the optimal redistribution via an income tax, when the social objective is based on a combination of efficiency and fairness principles, and when incentive issues are taken into account. We show how some fairness principles entail specific features for the optimal taxes, such as progressivity or tax exemption for incomes below the minimum wage.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • FLEURBAEY, Marc & MANIQUET, François, 2007. "Help the low skilled or let the hardworking thrive? A study of fairness in optimal income taxation," LIDAM Reprints CORE 1970, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1970
    DOI: 10.1111/j.1467-9779.2007.00316.x
    Note: In : Journal of Public Economic Theory, 9(3), 467-500, 2007
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