Ferriere Lab

National Centre for Scientific Research (CNRS)

Ile-de-France (FR1) · France

ERC-funded
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ERC Starting Grant · 2025

Rethinking the Efficiency-Redistribution Trade-Off: Taxes, Transfers, and Household Inequality

Income and wealth inequality have surged in OECD economies over recent decades, sparking renewed debates on the optimal tax-and-transfer system. How should governments design redistribution to the poor? Which taxes should be used to finance the safety net? This proposal consists of three projects combining rich quantitative models with analytical and empirical insights to push the frontier on our understanding of the efficiency-redistribution trade-off. Part I explores how to design income support to the poor. Since the 1980s, many OECD economies have reformed their safety net and introduced work requirements for several welfare programs. Work requirements foster efficiency as they…

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