000			01357nam a22001577a 4500
999			_c514173 _d514173
008			201012b ||||| |||| 00| 0 eng d
100			_aKroft, Kory, Kavan Kucko, and Johannes Schmieder _918556
245			_aOptimal income taxation with unemployment and wage responses: a sufficient statistics approach
260			_aAmerican Economic Journal: Economic Policy
300			_a12(1), Feb, 2020: p 254-392
520			_aWe derive a sufficient statistics tax formula in a model that incorporates unemployment and endogenous wages to study the shape of the optimal income tax. Key sufficient statistics are the macro employment response to taxation, the micro and macro participation response to taxation, and the wage-moderating effect of tax progressivity. We empirically implement the tax formula by estimating the micro and macro elasticities using policy variation from the United States. Our results suggest that the optimal tax more closely resembles a negative income tax than an earned income tax credit relative to the case where unemployment and wage responses are ignored. - Reproduced
650			_aEmployment, Unemployment, Wages; Intergenerational income distribution, Aggregate human capital, Aggregate labor productivity _918557
773			_aAmerican Economic Journal: Economic Policy
906			_aTAXATION AND SUBSIDIES
942			_cAR