In a Mirrleesian environment, a monopsonist sets hourly wages and individuals choose how many hours to work. Labor market outcomes do not only depend on the level and slope of the income tax function, but also on its curvature. Albert Jan Hummel discusses the impact of tax curvature on labor market outcomes.
Albert Jan Hummel: www.albertjanhummel.com
Study: https://www.sciencedirect.com/science/article/pii/S0047272723001032
Image courtesy of interviewee. October 2, 2023
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