Advanced Search
MyIDEAS: Login

Redistributive taxation vs. education subsidies: Fostering equality and social mobility in an intergenerational model

Contents:

Author Info

  • Schneider, Andrea

Abstract

Redistributive taxation and education subsidies are common policies intended to foster education attendance of poor children. However, this paper shows that in an intergenerational framework, these policies can raise social mobility only for some investment situations but not in general. I also study the impact of both policies on the aggregate skill ratio and inequality. While redistributive taxation can raise social mobility but at the same time never reduces inequality, education subsidies can, under some conditions, achieve both simultaneously. Unfortunately, these conditions necessarily require a population in which the skill ratio is already quite high.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6VB9-4Y34WG3-1/2/dd7b56b12a3817e635e7cc7270e1b8bd
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 29 (2010)
Issue (Month): 4 (August)
Pages: 597-605

as in new window
Handle: RePEc:eee:ecoedu:v:29:y:2010:i:4:p:597-605

Contact details of provider:
Web page: http://www.elsevier.com/locate/econedurev

Related research

Keywords: Redistributive taxation Education subsidies Intergenerational mobility Inequality;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Abhijit V. Banerjee & Andrew F. Newman, 1990. "Occupational Choice and the Process of Development," Discussion Papers 911, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  2. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-89, December.
  3. Napel, Stefan & Schneider, Andrea, 2008. "Intergenerational talent transmission, inequality, and social mobility," Economics Letters, Elsevier, vol. 99(2), pages 405-409, May.
  4. Gaviria, Alejandro, 1998. "Intergenerational Mobility, Siblings' Inequality and Borrowing Constraints," University of California at San Diego, Economics Working Paper Series qt8x16c72b, Department of Economics, UC San Diego.
  5. Dilip Mookherjee & Debraj Ray, 2008. "A Dynamic Incentive-Based Argument for Conditional Transfers," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-170, Boston University - Department of Economics.
  6. Dilip Mookherjee & Debraj Ray, 2003. "Persistent Inequality," Review of Economic Studies, Wiley Blackwell, vol. 70(2), pages 369-393, 04.
  7. Robert A. J. Dur & Coenraad N. Teulings, 2001. "Education and Efficient Redistribution," CESifo Working Paper Series 592, CESifo Group Munich.
  8. Gianni De Fraja, 2005. "Reverse Discrimination And Efficiency In Education," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(3), pages 1009-1031, 08.
  9. A. Lans Bovenberg & Bas Jacobs, 2005. "Redistribution and Education Subsidies are Siamese Twins," Tinbergen Institute Discussion Papers 05-036/3, Tinbergen Institute.
  10. De Fraja, Gianni, 1998. "The Design of Optimal Education Policies," CEPR Discussion Papers 1792, C.E.P.R. Discussion Papers.
  11. Hassler, J. & Rodriguez Mora, J.V., 1998. "IQ, Social Mobility and Growth," Papers 635, Stockholm - International Economic Studies.
  12. Galor, Oded & Zeira, Joseph, 1988. "Income Distribution and Macroeconomics," MPRA Paper 51644, University Library of Munich, Germany, revised 01 Sep 1989.
  13. Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-67, June.
  14. Konrad, Kai A. & Spadaro, Amedeo, 2006. "Education, redistributive taxation and confidence," Journal of Public Economics, Elsevier, vol. 90(1-2), pages 171-188, January.
  15. Maoz, Yishay D & Moav, Omer, 1999. "Intergenerational Mobility and the Process of Development," Economic Journal, Royal Economic Society, vol. 109(458), pages 677-97, October.
  16. A. Lans Bovenberg & Bas Jacobs, 2005. "Redistribution and Education Subsidies are Siamese Twins," Tinbergen Institute Discussion Papers 05-036/3, Tinbergen Institute.
  17. Bjorklund, Anders & Kjellstrom, Christian, 2002. "Estimating the return to investments in education: how useful is the standard Mincer equation?," Economics of Education Review, Elsevier, vol. 21(3), pages 195-210, June.
  18. Dilip Mokherjee & Stefan Napel, 2006. "Intergenerational Mobility and Macroeconomic History Dependence," Discussion Papers 1, Aboa Centre for Economics.
  19. Freeman, Scott, 1996. "Equilibrium Income Inequality among Identical Agents," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1047-64, October.
  20. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Green, Colin P. & Navarro-Paniagua, María & Ximénez-de-Embún, Domingo P. & Mancebón, María-Jesús, 2014. "School choice and student wellbeing," Economics of Education Review, Elsevier, vol. 38(C), pages 139-150.
  2. Adel Ben Youssef & Thomas Letexier & Ludovic Ragni, 2011. "Bridging the Learning Gap in the Market for Higher Education: E-learning and Public Subsidies," Post-Print halshs-00937180, HAL.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:ecoedu:v:29:y:2010:i:4:p:597-605. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.