Fiscal Policy and Educational Attainment in the United States: A Generational Accounting Perspective
AbstractIn this paper we investigate the consequences of the rise in educational attainment on US generational accounts. We build on the 1995 existing accounts and disaggregate them per schooling level. Contrary to medium- and high-skill newborns, we show that low-skill newborns are characterized by negative generational accounts. Compared to the results obtained with the traditional methodology, our baseline forecast is more optimistic. Nevertheless, the rise in educational attainment is not strong enough to restore the generational balance. Balancing the budget requires increasing taxes by 1.2% or reducing transfers by 2.7%. Our results are robust to the main assumptions. Copyright (c) The London School of Economics and Political Science 2006.
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Bibliographic InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 74 (2007)
Issue (Month): 294 (05)
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Other versions of this item:
- Chojnicki, Xavier & Docquier, Frédéric, 2004. "Fiscal Policy and Educational Attainment in the United States – A Generational Accounting Perspective," IZA Discussion Papers 1040, Institute for the Study of Labor (IZA).
- Xavier Chojnicki & Frederic Docquier, 2003. "Fiscal Policy and Educational Attainment in the United States - A Generational Accounting Perspective," Public Economics 0303002, EconWPA, revised 18 Mar 2004.
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- H6 - Public Economics - - National Budget, Deficit, and Debt
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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