How Do Taxes Affect Human Capital? The Role of Intergenerational Mobility
AbstractThis paper investigates how explicitly modeling the intergenerational transmission of human capital modifies the effects of tax policies obtained from standard life-cycle models. The main finding is that the intergenerational persistence of human capital is not an important determinant of the steady state and transitional effects of several commonly studied tax policies. Conventional life-cycle models closely approximate the predictions generated by models with realistic intergenerational mobility properties. However, intergenerational persistence can substantially magnify the effects of policies that distort job-training investment. (Copyright: Elsevier)
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Bibliographic InfoArticle provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.
Volume (Year): 4 (2001)
Issue (Month): 3 (July)
Note: A technical appendix is available
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Other versions of this item:
- Lutz Hendricks, 2001. "Online Appendix to How Do Taxes Affect Human Capital? The Role of Intergenerational Mobility," Technical Appendices hendricks02, Review of Economic Dynamics.
- Hendricks, Lutz A., 2001. "How Do Taxes Affect Human Capital? The Role of Intergenerational Mobility," Staff General Research Papers 11929, Iowa State University, Department of Economics.
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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