This paper characterizes optimal non-linear income taxation in an economy with a continuum of unobservable productivity levels and endogenous involuntary unemployment due to frictions in the labor markets. Redistributive taxation distorts labor demand and wages. Compared to their efficient...

In this paper we investigate the effects on the real gross wage of the collective bargaining agreements signed at the beginning of 2009 between the employers' confederations, trade unions (with the exception of CGIL, tha largest union) and the Government (as an employer). We use a dynamic model...

This paper characterizes optimal non-linear income taxation in an economy with a continuum of unobservable productivity levels and endogenous involuntary unemployment due to frictions in the labor markets. Redistributive taxation distorts labor demand and wages. Compared to their efficient...