Dergiler / Central Bank Review / 2018 / Cilt: 18 - Sayı: 1

Optimal skill distribution under convex skill costs

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Tin Cheuk LEUNGA,Hakkı YAZICI

Sayfa
29–34
DOI
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Abstract

This paper studies optimal distribution of skills in an optimal income tax framework with convex skillconstraints. The problem is cast as a social planning problem where a redistributive planner chooses howto distribute a given amount of aggregate skills across people. WeŞnd that optimal skill distribution iseither perfectly equal or perfectly unequal, but an interior level of skill inequality is never optimal.© 2017 Production and hosting by Elsevier B.V. on behalf of Central Bank of The Republic of Turkey. Thisis an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)