Optimal taxation in occupational choice models: an application to the work decisions of couples

Published on 4 May 2017

We study a general model of occupational choice and optimal income taxation where agents have private cost of work that di ffer across occupations and have both deterministic and random components. We apply our framework to study the work decisions of couples in an extensive set up and give necessary and sufficient conditions under which joint-working households should be subsidized compared to single-worker households.

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We study a general model of occupational choice and optimal income taxation where agents have private cost of work that di ffer across occupations and have both deterministic and random components. We apply our framework to study the work decisions of couples in an extensive set up and give necessary and sufficient conditions under which joint-working households should be subsidized compared to single-worker households.

    Authors

    Nicola Pavoni
    Nicola Pavoni

    Research Associate Bocconi University

    Nicola is a Research Associate at IFS, a Research Fellow at IGIER and a Professor in the Department of Economics at Bocconi University

    Working Paper details

    DOI
    10.1920/WP.IFS.2017.1707
    Publisher
    The IFS

    Suggested citation

    Laroque, G and Pavoni, N. (2017). Optimal taxation in occupational choice models: an application to the work decisions of couples. London: The IFS. Available at: https://ifs.org.uk/publications/optimal-taxation-occupational-choice-models-application-work-decisions-couples (accessed: 18 June 2025).

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