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Journal of Political Economy Microeconomics
Article . 2025 . Peer-reviewed
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Fairness Gaps for Earnings Tax Design

Authors: Ooghe, Erwin; Schokkaert, Erik; Serruys, Hannes;

Fairness Gaps for Earnings Tax Design

Abstract

In a setting with skill and preference heterogeneity, we characterize a family of social welfare measures that aggregate fairness gaps, defined as the difference between the money-metric utilities that individuals have and the money-metric utilities they should have in a fair society. Each welfare measure can be decomposed into government revenues (size), excess burden (inefficiency), and unfair inequality (inequity). As a proof of concept, we evaluate four hypothetical earnings tax reforms based on two normative parameters: the degree of unfairness aversion and the degree of compensation for productive skills.

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Belgium
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Top 10%
Average
Average
Green