Arbeitspapier
Optimal Combinations of Income Tax and Subsidies for Education
Nielsen and Sørensen (1997) find that progressive taxation of labour income is optimal when capital income is taxed. This paper shows that their main result still holds when introducing endogenous choice of occupation, individuals with non- pecuniary preferences for one type of occupation, and tuition fees into the model, provided the subsidy rate for tuition in the high skill occupation is not too low. However, a new result in this paper state that efficiency can be reached when labour income tax is proportional and capital income is taxed, provided that the rates of subsidies for tuition are lower than the labour income tax rate.
- Language
-
Englisch
- Bibliographic citation
-
Series: Discussion Papers ; No. 313
- Classification
-
Wirtschaft
Taxation and Subsidies: Efficiency; Optimal Taxation
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
- Subject
-
Optimal income taxation
Human capital investments
Subsidies for tuition
Skill formation
- Event
-
Geistige Schöpfung
- (who)
-
Bjertnæs, Geir Haakon
- Event
-
Veröffentlichung
- (who)
-
Statistics Norway, Research Department
- (where)
-
Oslo
- (when)
-
2001
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the 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
- Bjertnæs, Geir Haakon
- Statistics Norway, Research Department
Time of origin
- 2001
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