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

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

IFS Working Paper W17/07

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.