Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26314
Authors: 
Aronsson, Thomas
Koskela, Erkki
Year of Publication: 
2008
Series/Report no.: 
CESifo working paper 2269
Abstract: 
This paper addresses outsourcing in the two-type optimal income tax model. If the government is able to control outsourcing via a direct tax instrument, outsourcing will not affect the marginal income tax structure. In the absence of a direct tax instrument, and under the plausible assumption that higher outsourcing increases the wage differential, the government will implement a lower marginal income tax rate for the low-ability type and a higher marginal income tax rate for the high-ability type than it would otherwise have done.
Subjects: 
outsourcing
optimal nonlinear taxation
JEL: 
H21
H25
J31
J62
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.