Discussion Papers no. 686

Promotion rat race and public policy

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This study investigates whether excess effort to climb a career ladder justifies policy interventions. The answer depends on whether the government is able to levy a higher tax burden on career workers than on non-career workers. Both a tax on top income aimed at lowering the rewards of promotion and a labour law that restricts excess effort require such a differentiation in the tax burden to improve welfare. The differentiation in tax burden prevents that the welfare gain of reducing excess effort is neutralized by the welfare cost connected to an increase in the number of career workers.

Om publikasjonen

Tittel

Promotion rat race and public policy

Ansvarlig

Geir H. Bjertnæs

Serie og -nummer

Discussion Papers no. 686

Utgiver

Statistics Norway

Emne

Discussion Papers

ISSN

1892-753X

Antall sider

27

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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