Optimal skill distribution under convex skill costs

Optimal skill distribution under convex skill costs

Blog Article

This paper studies optimal distribution of skills in an optimal income tax framework with convex skill constraints.The problem is cast as a social planning problem where Day and Night Cream a redistributive planner chooses how to distribute a given amount of aggregate skills across people.We find that optimal skill distribution is either perfectly equal or perfectly unequal, but an Audio interior level of skill inequality is never optimal.