Arbeitspapier
Income Tax, Consumption Value of Education, and the Choice of Educational Type
How the tax system might affect the individual's educational level is well studied. But the question of how the tax system affects the individual's choice of educational type is mostly ignored. This is an important issue, since the educational choice of today's young generation determines the skill composition of tomorrow's labor force and hence the future production possibilities of the country. This paper studies the problem in a partial model. A progressive tax system might in fact introduce distortions in the individuals's educational choice and induce him to choose more of the educational type with the higher consumption value. If he also puts more weight on the present than on the future, this effect is strengthened further.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 1055
- Classification
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Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Alstadsæter, Annette
- Event
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Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
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2003
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Alstadsæter, Annette
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2003