Arbeitspapier

Education, redistributive taxation and confidence

We consider redistributional taxation between people with and without human capital if education is endogenous and if individuals differ in their perceptions about own ability. Those who see their ability as low like redistributive taxation because of the transfers it generates. Those who see their ability as high may also like redistributive taxation because it stops other people receiving education and increases the quasi rents on their own human capital. It is surprising that this rather indirect effect can overcompensate them for the income loss from taxation and make the overconfident want higher taxes than the less confident do. The results, however, turn out to be in line with empirical evidence on the desired amount of redistribution among young individuals.

Alternative title
Bildung, Steuerumverteilung und Vertrauen
Language
Englisch

Bibliographic citation
Series: WZB Discussion Paper ; No. SP II 2005-05

Classification
Wirtschaft
Positive Analysis of Policy Formulation and Implementation
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Analysis of Education
Subject
Education
redistribution
confidence

Event
Geistige Schöpfung
(who)
Konrad, Kai Andreas
Spadaro, Amedeo
Event
Veröffentlichung
(who)
Wissenschaftszentrum Berlin für Sozialforschung (WZB)
(where)
Berlin
(when)
2005

Handle
Last update
10.03.2025, 11:46 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Konrad, Kai Andreas
  • Spadaro, Amedeo
  • Wissenschaftszentrum Berlin für Sozialforschung (WZB)

Time of origin

  • 2005

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