EconPapers    
Economics at your fingertips  
 

Optimal Taxation to Correct Job Mismatching

Guillaume Wilemme ()

No 1723, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: This paper presents a new efficiency argument for an accommodating taxation policy on high incomes. Job seekers, applying to different segments of a frictional labor market, do not internalize the consequences of mismatch on the entry decision of firms. Workers are not selective enough, resulting in a lower average job productivity and suboptimal job creation. The output-maximizing policy is anti-redistributive to improve the quality of the jobs prospected. As an income tax affects the sharing of the match surplus, a tax on production (or profits) is required to redress the slope of the wage curve. Neither a minimum wage nor unemployment benefits can fully decentralize optimal search behaviors.

Keywords: anti-redistributive taxation; composition externality; job quality; mismatch; search strategy (search for similar items in EconPapers)
JEL-codes: H21 H23 J24 J42 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-pbe and nep-pub
Date: 2017-06
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.amse-aixmarseille.fr/sites/default/fil ... /wp_2017_-_nr_23.pdf (application/pdf)

Related works:
Working Paper: Optimal Taxation to Correct Job Mismatching (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:1723

Access Statistics for this paper

More papers in AMSE Working Papers from Aix-Marseille School of Economics, France AMU - AMSE 5-9 Boulevard Maurice Bourdet, CS 50498 ​ 13205 Marseille Cedex 1. Contact information at EDIRC.
Bibliographic data for series maintained by Grégory Cornu ().

 
Page updated 2019-06-16
Handle: RePEc:aim:wpaimx:1723