Labour supply, welfare and the earnings distribution

John Creedy

Australian Journal of Labour Economics (AJLE), 2000, vol. 4, issue 3, 134-151

Abstract: This paper examines the generation of earnings distributions using a labour supply framework in which individuals face piecewise-linear budget constraints. The possible implications for the distribution of earnings within a population consisting of single individuals having a joint distribution of wage rates and preferences are considered. Attention is given to the form of the distribution in terms of the number and position of modes and antimodes, and their relationship with the structure of taxes and transfers. Since it is necessary to obtain the optimal labour supply for a large number of individuals, attention is also given to the efficient computation of local optima for a tax structure having any number of effective marginal tax rates.

Keywords: Time Allocation; Work Behaviour; Employment Determination and Creation; Taxation, Subsidies, and Revenue, Externalities, Redistributive Effects of Economic Agents: General (search for similar items in EconPapers)
JEL-codes: H23 H30 J20 (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ozl:journl:v:4:y:2001:i:3:p:134-151

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