@techreport{8684ed4cac9a4049b5e331d451b10786,
title = "At Whose Service? Subsidizing Services and the Skill Premium",
abstract = "In this paper we investigate the effects of subsidizing low-skilled, labourintensive services hired by high-skilled individuals in the presence of labour income taxation. Whether such a subsidy can be Paretoimproving depends crucially on the degree of substitutability of both types of labour in the non-service sector. In case of some substitutability, a service subsidy can benefit all and decrease inequality, but in case of complementarity, low-skilled individuals benefit and high-skilled individuals are worse off.",
keywords = "household production, services, skill premium, subsidy, wage tax",
author = "{van Groezen}, B.J.A.M. and A.C. Meijdam",
note = "Pagination: 19",
year = "2010",
language = "English",
volume = "2010-01",
series = "CentER Discussion Paper",
publisher = "Macroeconomics",
type = "WorkingPaper",
institution = "Macroeconomics",
}