Optimal redistribution programs boost low-income employment, tax high-income individuals.
The study looks at how to design the best way to redistribute income in a fair and efficient manner. It focuses on how to help people with low incomes find jobs and how to tax those with higher incomes. The researchers found that it is best to give subsidies to low-income individuals to encourage them to work, while taxing higher-income individuals to balance things out. They also discovered that work requirements are only necessary for certain groups who struggle to find employment.