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Educating Europe

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  • Panu Poutvaara

Abstract

The mobility of labor reduces national incentives to invest in internationally applicable education. The European Union could overcome this by allowing member states to institute graduate taxes or income-contingent loans, collected also from migrants. This paper presents calculations on how a graduate tax system could look for Finland. To protect citizens against Leviathan governments, graduate taxes or income-contingent loans could be based on voluntary contracts. Education would then be financed publicly only for those accepting also to share the returns. With EU enlargement, such reforms could generate a triple dividend.

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  • Panu Poutvaara, 2004. "Educating Europe," CESifo Working Paper Series 1114, CESifo.
    • Handle: RePEc:ces:ceswps:_1114
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    Cited by:

    1. Poutvaara, Panu, 2011. "The expansion of higher education and time-consistent taxation," European Journal of Political Economy, Elsevier, vol. 27(2), pages 257-267, June.
    2. Volker Grossmann & David Stadelmann, 2012. "Does High-skilled Migration Affect Publicly Financed Investments?," Review of International Economics, Wiley Blackwell, vol. 20(5), pages 944-959, November.
    3. Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2014. "Financing Higher Education in a Mobile World," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(3), pages 343-371, June.
    4. Maria Racionero & Elena Del Rey, 2012. "Choosing the type of income-contingent loan: risk-sharing versus risk-pooling," CEPR Discussion Papers 671, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    5. repec:hal:journl:dumas-00909926 is not listed on IDEAS
    6. Kemnitz, Alexander, 2005. "Educational Federalism and the Quality Effects of Tuition Fees," Discussion Papers 617, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    7. Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2008. "The Provision of Higher Education in a Global World—Analysis and Policy Implications," CESifo Economic Studies, CESifo Group, vol. 54(2), pages 248-276.
    8. Khattak, Sharafatullah & Hussain, Anwar Hussain, 2009. "An Analysis of the Utilization of Asian Development Bank’s Loans for Books Procurement: A Case Study of Loan Provided to Technical Education Project, NWFP (1996-2004)," MPRA Paper 41994, University Library of Munich, Germany.
    9. Marcel Gerard, 2007. "Financing Bologna: Which Country will Pay for Foreign Students?," Education Economics, Taylor & Francis Journals, vol. 15(4), pages 441-454.
    10. Björn Kauder & Niklas Potrafke, 2013. "Government Ideology and Tuition Fee Policy: Evidence from the German States," CESifo Economic Studies, CESifo, vol. 59(4), pages 628-649, December.
    11. Lydia Mechtenberg & Roland Strausz, 2008. "The Bologna process: how student mobility affects multi-cultural skills and educational quality," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(2), pages 109-130, April.
    12. Tina Haussen & Silke Uebelmesser, 2018. "No Place Like Home? Graduate Migration in Germany," Growth and Change, Wiley Blackwell, vol. 49(3), pages 442-472, September.
    13. Panu Poutvaara, 2004. "Public Education in an Integrated Europe: Studying to Migrate and Teaching to Stay?," CESifo Working Paper Series 1369, CESifo.
    14. Rainald Borck & Silke Uebelmesser & Martin Wimbersky, 2015. "The Political Economics of Higher-Education Finance for Mobile Individuals," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 71(1), pages 82-105, March.
    15. Domenico Scalera, 2012. "Skilled Migration And Education Policies: Is There Still Scope For A Bhagwati Tax?," Manchester School, University of Manchester, vol. 80(4), pages 447-467, July.
    16. Hartmut Egger & Josef Falkinger & Volker Grossmann, 2012. "Brain Drain, Fiscal Competition, and Public Education Expenditure," Review of International Economics, Wiley Blackwell, vol. 20(1), pages 81-94, February.
    17. Delpierre, Matthieu & Verheyden, Bertrand, 2014. "Student and worker mobility under university and government competition," Journal of Public Economics, Elsevier, vol. 110(C), pages 26-41.
    18. Tim Krieger & Thomas Lange, 2010. "Education policy and tax competition with imperfect student and labor mobility," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 17(6), pages 587-606, December.
    19. Panu Poutvaara, 2004. "Public Education in an Integrated Europe: Studying for Migration and Teaching for Staying?," Public Economics 0406006, University Library of Munich, Germany.
    20. Wolfram F. Richter & Berthold U. Wigger, 2012. "Besteuerung des Humanvermögens," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 13(1-2), pages 82-102, February.
    21. Ivo Bischoff & Julia Hauschildt, 2019. "Vocational schools as an instrument of interregional competition—Empirical evidence from German counties [Berufsschulen als Instrument im interregionalen Wettbewerb – Ergebnisse einer Analyse für d," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 39(1), pages 65-89, February.
    22. Marcel Gérard, 2008. "Financing Bologna, the Internationally Mobile Students in European Higher Education," CESifo Working Paper Series 2391, CESifo.
    23. Salvatore Barbaro, 2004. "Tax Distortion, Countervailing Subsidies and Income Redistribution," Departmental Discussion Papers 121, University of Goettingen, Department of Economics.
    24. Thomas Lange, 2008. "Local Public Funding of Higher Education when Students and Skilled Workers are Mobile," Working Papers CIE 11, Paderborn University, CIE Center for International Economics.
    25. Schwager, Robert, 2007. "Public Universities, Tuition and Competition: A Tiebout Model," ZEW Discussion Papers 07-056, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    Keywords

    graduate taxes; European Union; individual accounts; income-contingent loans; migration;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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