Arbeitspapier
Are Education Subsidies an Efficient Redistributive Device?
We argue that promoting education may be a means to reduceincome inequality. When workers of different skill levels areimperfect substitutes in production, an increase in the level ofhuman capital in the economy reduces the return to education.Hence, a given compression of after-tax incomes can be achievedat lower marginal tax rates. Optimal redistribution policy faces atrade-off between the distortions of taxes on effort and the distortionsof education subsidies on the investment in human capital.We discuss empirical evidence on three crucial elasticities. Ourargument explains the actual pattern of education subsidies inOECD countries quite well.However, there is an offsetting effect. When education andability are complements, high ability types take up more education.A subsidy to education will then favor these types. Wediscuss the condition for the net effect of education subsidies tobe progressive. The empirical evidence suggest that this conditionis critical for a simple education subsidy. We consider somemore elaborate schemes for education subsidies.This discussion paper has resulted in ch. 4 of href=http://books.google.nl/books?hl=nl&lr=&id=edksC0nRPZYC&oi=fnd&pg=PR7&dq=allesintitel:+%22Labor+Market+Institutions+and+Public+Regulation%22&ots=-umxBkjdnT&sig=oeFDTjhnSeo-w-4nuTjTJpuaUr8@v=onepage&q=&f=false>'Labor Market Institutions and Public Regulation', pp. 123-61, (Jonas Agell, Michael Keen, Alfons Weichenrieder (eds.)), 2004, MIT Press, 228 p.
- Sprache
-
Englisch
- Erschienen in
-
Series: Tinbergen Institute Discussion Paper ; No. 03-024/3
- Klassifikation
-
Wirtschaft
Taxation and Subsidies: Efficiency; Optimal Taxation
National Government Expenditures and Education
Human Capital; Skills; Occupational Choice; Labor Productivity
Wage Level and Structure; Wage Differentials
- Thema
-
income inequality
optimal taxation
education.
Bildungsfinanzierung
Subvention
Optimale Besteuerung
Verteilungswirkung
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Dur, Robert A.J.
Teulings, Coen N.
- Ereignis
-
Veröffentlichung
- (wer)
-
Tinbergen Institute
- (wo)
-
Amsterdam and Rotterdam
- (wann)
-
2003
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Dur, Robert A.J.
- Teulings, Coen N.
- Tinbergen Institute
Entstanden
- 2003
Ähnliche Objekte (12)
Efficient Progressive Taxes and Education Subsidies
On the Efficient Influence Function and the Efficient Score Function
Food subsidies in general equilibrium
Redistributive Consequences of Abolishing Uniform Contribution Policies in Pension Funds
Redistribution and Education Subsidies are Siamese Twins
Computationally Attractive Stability Tests for the Efficient Method of Moments
Post-Sample Prediction Tests for the Efficient Method of Moments
How Costly is using Livestock as a Saving Device? A Note on Meat Prices during Food Shortages
Redistributive Politics and the Tyranny of the Middle Class
Insurance and Information: Firms as a Commitment Device
Education and Efficient Redistribution
Perseverance of Perverse Subsidies and their Impact on Trade and the Environment
Efficient Progressive Taxes and Education Subsidies
On the Efficient Influence Function and the Efficient Score Function
Food subsidies in general equilibrium
Redistributive Consequences of Abolishing Uniform Contribution Policies in Pension Funds
Redistribution and Education Subsidies are Siamese Twins
Computationally Attractive Stability Tests for the Efficient Method of Moments
Post-Sample Prediction Tests for the Efficient Method of Moments
How Costly is using Livestock as a Saving Device? A Note on Meat Prices during Food Shortages
Redistributive Politics and the Tyranny of the Middle Class
Insurance and Information: Firms as a Commitment Device
Education and Efficient Redistribution
Perseverance of Perverse Subsidies and their Impact on Trade and the Environment
Efficient Progressive Taxes and Education Subsidies
On the Efficient Influence Function and the Efficient Score Function
Food subsidies in general equilibrium
Redistributive Consequences of Abolishing Uniform Contribution Policies in Pension Funds
Redistribution and Education Subsidies are Siamese Twins
Computationally Attractive Stability Tests for the Efficient Method of Moments
Post-Sample Prediction Tests for the Efficient Method of Moments
How Costly is using Livestock as a Saving Device? A Note on Meat Prices during Food Shortages
Redistributive Politics and the Tyranny of the Middle Class
Insurance and Information: Firms as a Commitment Device
Education and Efficient Redistribution