Arbeitspapier

The expansion of higher education and time-consistent taxation

This paper analyzes educational choices and political support for subsidies to higher education in the presence of a time-consistency problem in income redistribution. There may be political support for so generous subsidization that it motivates the median voter to obtain higher education. As a result of increasing own income, the median voter prefers in the future lower taxes than without higher education. Therefore, the expansion of participation in higher education during the second half of the 20th century may have partly been driven by the aim to limit the political support for overly generous income redistribution.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 3023

Classification
Wirtschaft
Subject
Education
time-consistency problem
voting
subsidies to education
Hochschule
Bildungsverhalten
Einkommensumverteilung
Zeitkonsistenz
Median Voter
Bildungspolitik
Theorie

Event
Geistige Schöpfung
(who)
Poutvaara, Panu
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2007

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Poutvaara, Panu
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2007

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