Inés P. Murillo Huertas () (Universidad de Extremadura) Francisco Pedraja Chaparro () (Universidad de Extremadura)
Abstract
The present paper analyzes one of the advantages that a country can derive from people with higher educational levels, i.e. higher tax revenues resulting from the higher earnings from higher school attainment.More specifically, we test whether the marginal revenue obtained by the public sector from taxpayers holding an additional educational level is higher than the marginal public expenditure on them. To accomplish this aim, we extend Psacharopoulos (1981) analysis and calculate internal rates of return for public expenditure in schooling. Our results suggest that taxpayers with an additional educational level, including those attaining post-compulsory educational levels, are profitable for the public sector.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.
Find related papers by JEL classification: I2 - Health, Education, and Welfare - - Education H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents H5 - Public Economics - - National Government Expenditures and Related Policies
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.: