Education policies and optimal taxation

"This paper studies the design of education policies in a setting in which optimal redistributive labor taxation is available. It is usually argued that the crucial parameter to guide education policy is the complementarity of education and ability. This is true only when labor supply is fixed...

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Autor Principal: Maldonado, Darío
Formato: Artículo (Article)
Lenguaje:Inglés (English)
Publicado: 2008
Materias:
Acceso en línea:https://repository.urosario.edu.co/handle/10336/22181
https://doi.org/10.1007/s10797-006-9015-7
id ir-10336-22181
recordtype dspace
spelling ir-10336-221812021-01-21T08:19:33Z Education policies and optimal taxation Maldonado, Darío Education Optimal taxation "This paper studies the design of education policies in a setting in which optimal redistributive labor taxation is available. It is usually argued that the crucial parameter to guide education policy is the complementarity of education and ability. This is true only when labor supply is fixed or when income taxes are not allowed. I show that, if labor supply is endogenous and if the government can tax income in a nonlinear way, the crucial parameter is how the education elasticity of wage changes with ability. Taking the elasticity criterion into account, education subsidies are optimal in cases in which, under the complementarity criterion, education taxes would be optimal. To do this, I use an asymmetric information setting that motivates nonlinear taxation of income and education. © 2007 Springer Science+Business Media, LLC." 2008 2020-05-25T23:55:42Z info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion 15736970 09275940 https://repository.urosario.edu.co/handle/10336/22181 https://doi.org/10.1007/s10797-006-9015-7 eng info:eu-repo/semantics/openAccess application/pdf instname:Universidad del Rosario reponame:Repositorio Institucional EdocUR
institution EdocUR - Universidad del Rosario
collection DSpace
language Inglés (English)
topic Education
Optimal taxation
spellingShingle Education
Optimal taxation
Maldonado, Darío
Education policies and optimal taxation
description "This paper studies the design of education policies in a setting in which optimal redistributive labor taxation is available. It is usually argued that the crucial parameter to guide education policy is the complementarity of education and ability. This is true only when labor supply is fixed or when income taxes are not allowed. I show that, if labor supply is endogenous and if the government can tax income in a nonlinear way, the crucial parameter is how the education elasticity of wage changes with ability. Taking the elasticity criterion into account, education subsidies are optimal in cases in which, under the complementarity criterion, education taxes would be optimal. To do this, I use an asymmetric information setting that motivates nonlinear taxation of income and education. © 2007 Springer Science+Business Media, LLC."
format Artículo (Article)
author Maldonado, Darío
author_facet Maldonado, Darío
author_sort Maldonado, Darío
title Education policies and optimal taxation
title_short Education policies and optimal taxation
title_full Education policies and optimal taxation
title_fullStr Education policies and optimal taxation
title_full_unstemmed Education policies and optimal taxation
title_sort education policies and optimal taxation
publishDate 2008
url https://repository.urosario.edu.co/handle/10336/22181
https://doi.org/10.1007/s10797-006-9015-7
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