On Optimal Skill Distribution in a Mirrleesian Economy

Hakkı Yazıcı, Tin Cheuk Leung
2017 Bogazici Journal  
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.
doi:10.21773/boun.31.2.4 fatcat:ilkp2fazxnal7pfsdyixsb7ybi