On optimal skill distribution in a Mirrleesian economy
Yazıcı, Hakkı and Leung, Tin Cheuk (2017) On optimal skill distribution in a Mirrleesian economy. Bogazici Journal, 31 (2). ISSN 1300-9583
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Official URL: http://dx.doi.org/10.21773/boun.31.2.4
This paper analyzes optimal distribution of skills in an economy where, in addition to choosing income taxes, a redistributive government also chooses the dispersion of skill distribution given the average skill level of the economy. We find that perfectly unequal skill distribution in which one group has a very high skill level and the rest are completely unskilled is socially optimal.
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