AbstractThe 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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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1114.
Date of creation: 2004
Date of revision:
graduate taxes; European Union; individual accounts; income-contingent loans; migration;
Other versions of this item: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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-05-02 (All new papers)
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