Redistribution and labor market inclusion
将劳动力市场不活跃和长期失业纳入最优再分配税收框架，研究教育政策、公共就业计划、失业救济和所得税的组合如何同时实现再分配目标和应对长期失业挑战。
Abstract This paper incorporates labor market inactivity and long‐term unemployment into the framework of optimal redistributive taxation. We examine how a combination of education policy, public employment programs, unemployment benefits, and optimal income taxation can effectively address both redistributive goals and the persistent challenges of long‐term unemployment. Our analysis shows that the second‐best optimal policy typically implies overprovision of education compared with a policy rule that reflects only direct marginal benefits and costs. At the same time, public employment programs and unemployment benefits tend to be underprovided. Using numerical simulations, we illustrate how this policy mix adapts to varying preferences for redistribution, productivity disparities, and the proportion of individuals at risk of long‐term unemployment.