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Good Jobs, Bad Jobs and Redistribution

Kjell Erik LommerudBjorn SandvikOdd Rune Straume

出版	SSRN, 2005
URL	http://books.google.com.hk/books?id=6w3fzwEACAAJ&hl=&source=gbs_api

註釋

We analyse the question of optimal taxation in a dual economy, when the policy-maker is concerned about the distribution of labour income. Income inequality is caused by the presence of sunk capital investments, which creates a 'good jobs' sector due to the capture of quasi-rents by trade unions. With strong unions and high planner preference for income equality, the optimal policy is a combination of investment subsidies and progressive income taxation. If unions are weaker, the policy-maker may instead choose to tax investment.