Income taxation and redistribution with extensive marginal labor responses based on age and generation

2022 Fiscal Year Final Research Report

• Project/Area Number: 19K01717
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Review Section: Basic Section 07050:Public economics and labor economics-related
• Research Institution: Meiji Gakuin University (2020-2022); Shizuoka University (2019)
• Principal Investigator: Takamatsu Yoshihiro 明治学院大学, 経済学部, 教授 (90454016)
• Project Period (FY): 2019-04-01 – 2023-03-31
• Keywords: 最適所得税 / 就業選択 / 年齢に基づく税制・再分配政策 / 非自発的失業 / 失業給付 / 給付付き税額控除 / 老後の資産形成

Outline of Final Research Achievements

In this study, I investigate the optimal labor income taxation with extensive labor margin and propose incentive compatible redistribution policies. This study suggests the following: (i) We consider the optimal age-dependent income taxation in a dynamic extensive margin and show that a negative participation tax should be restricted to young households. (ii) We investigate an optimal combination of labor income taxation and search-contingent unemployment benefits in a model with involuntary unemployed households. We derive optimal rules of employment tax and the search-contingent unemployment benefits and show that the optimal size of unemployment benefits is likely positive. (iii) We consider the stationary nonlinear labor income taxation in a dynamic extensive margin. The long-run consequences of household’s saving behavior and asset distribution blunt the desirability of in-work benefits policies.

Free Research Field

財政学

Academic Significance and Societal Importance of the Research Achievements

これまでの多くの研究では，家計の労働供給行動として労働時間の選択モデルを用いて分析を行ってきたが，本研究では就業選択モデルを採用し，年齢に基づいた政策の有用性や動学的モデルの下での給付付き税額控除の有用性，給付付き税額控除と失業給付の有用性と役割分担について明らかにしており，その点に学術的意義がある。また，今後の就労可能な低所得者に対する所得税・再分配政策の制度設計に関して有用な判断材料を提供することができた点に社会的意義がある。