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© 1998 Oxford University Press

research-article

Who should be on workfare? The use of work requirements as part of an optimal tax mix

Craig Brett

Department of Economics, University of Essex Colchester CO4 3SQ; e-mail: craig{at}essex.ac.uk

This paper analyses the possibility of using workfare as a supplement to an optimal nonlinear income tax scheme. Some general properties of the optimal tax-required work schedule are derived. For the two-class economy, explicit conditions for the inclusion of workfare in an optimal tax mix are derived.


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