Redistributive Taxation, Inequality, and Intergenerational Mobility

Arbeitspapier

Education decisions determine a great part of future income. This paper argues that if education is financed by parents' current income a lump-sum tax reduces inequality if all parents have strict investment incentives. However, if some parents are indifferent there is a possible decrease in the wage gap via a contrary indirect tax effect which drops the returns of schooling. Under strict incentives social mobility is not affected, but it increases if skilled parents have weak incentives and decreases if unskilled parents are indifferent in their investment decision.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionspapier ; No. 68

Classification and Topics

• Classification: Wirtschaft ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies ; Fiscal Policies and Behavior of Economic Agents: Household ; Personal Income, Wealth, and Their Distributions ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Analysis of Education ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Job, Occupational, and Intergenerational Mobility; Promotion
• Subject: Intergenerational mobility ; Inequality ; Redistribution ; Lumpsum tax ; Soziale Mobilität ; Generationenbeziehungen ; Bildungsinvestition ; Einkommensumverteilung ; Kopfsteuer ; Einkommensverteilung ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schneider, Andrea
• Event: Veröffentlichung
• (who): Helmut-Schmidt-Universität - Universität der Bundeswehr Hamburg, Fächergruppe Volkswirtschaftslehre
• (where): Hamburg
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/23717
• URN: urn:nbn:de:gbv:705-opus-17026
• Last update: 10.03.2025, 11:42 AM CET