Resource title

Outsourcing and optimal nonlinear taxation: a note

Resource image

image for OpenScout resource :: Outsourcing and optimal nonlinear taxation: a note

Resource description

This paper addresses outsourcing in the two-type optimal income tax model. If the government is able to control outsourcing via a direct tax instrument, outsourcing will not affect the marginal income tax structure. In the absence of a direct tax instrument, and under the plausible assumption that higher outsourcing increases the wage differential, the government will implement a lower marginal income tax rate for the low-ability type and a higher marginal income tax rate for the high-ability type than it would otherwise have done.

Resource author

Thomas Aronsson, Erkki Koskela

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26314

Resource license

Adapt according to the presented license agreement and reference the original author.