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Mobility and the Role of Education as a Commitment Device

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  • Claudio Thum
  • Silke Uebelmesser

Abstract

European integration forces system competition within European countries. This competition has important implications for both the public pay-as-you-go pension scheme and the public education system. Without labor mobility, each generation has an incentive to invest in the human capital of the subsequent generation in order to maximize pension payments. It is a popular belief that increasing labor mobility decreases the incentives to finance the education of the subsequent generation. This paper shows that this is not true if human capital investment increases the mobility of the subsequent generation and can thus be used as a commitment device for low taxes.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2001/wp-cesifo-2001-04/cesifo_wp450.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 450.

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Date of creation: 2001
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Handle: RePEc:ces:ceswps:_450

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Keywords: Education; intergenerational transfers; commitment;

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References

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  1. Andersson, Fredrik & Konrad, Kai A, 2001. "Globalization and Human Capital Formation," CEPR Discussion Papers 2657, C.E.P.R. Discussion Papers.
  2. Robin Boadway & Nicolas Marceau & Maurice Marchand, 1992. "Investment in Education and the Time Inconsistency of Redistributive Tax Policy," Working Papers 860, Queen's University, Department of Economics.
  3. Kehoe, Patrick J, 1989. "Policy Cooperation among Benevolent Governments May Be Undesirable," Review of Economic Studies, Wiley Blackwell, vol. 56(2), pages 289-96, April.
  4. Mark Gradstein, 1999. "An Economic Rationale for Public Education: The Value of Commitment," CESifo Working Paper Series 209, CESifo Group Munich.
  5. Konrad, Kai A, 1995. "Social Security and Strategic Inter-vivos Transfers of Social Capital," Journal of Population Economics, Springer, vol. 8(3), pages 315-26, August.
  6. Mark Gradstein & Moshe Justman, 1996. "The political economy of mixed public and private schooling: A dynamic analysis," International Tax and Public Finance, Springer, vol. 3(3), pages 297-310, July.
  7. Sinn, Hans-Werner, 1997. "The selection principle and market failure in systems competition," Journal of Public Economics, Elsevier, vol. 66(2), pages 247-274, November.
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Citations

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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. Nikos Benos, 2005. "Education Systems, Growth and Welfare," University of Cyprus Working Papers in Economics 5-2005, University of Cyprus Department of Economics.
  3. Gabrielle Demange, 2008. "The Provision of Higher Education in a Global World—Analysis and Policy Implications," CESifo Economic Studies, CESifo, vol. 54(2), pages 248-276, June.
  4. Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2008. "Financing Higher Education and Labor Mobility," CESifo Working Paper Series 2362, CESifo Group Munich.
  5. Marcel GERARD & Silke UEBELMESSER, 2014. "Financing Higher Education when Students and Graduates are Internationally Mobile," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2014010, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  6. Poutvaara, Panu, 2005. "Public education in an integrated Europe: Studying to migrate and teaching to stay?," ZEI Working Papers B 03-2005, ZEI - Center for European Integration Studies, University of Bonn.
  7. Alexander Haupt & Eckhard Janeba, 2004. "Education, Redistribution, and the Threat of Brain Drain," NBER Working Papers 10618, National Bureau of Economic Research, Inc.
  8. Alexander Haupt & Silke Uebelmesser, 2009. "Voting on Labour-Market Integration and Education Policy when Citizens Differ in Mobility and Ability," CESifo Working Paper Series 2588, CESifo Group Munich.
  9. Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2012. "Financing Higher Education in a Mobile World," CESifo Working Paper Series 3849, CESifo Group Munich.
  10. Panu Poutvaara, 2004. "Educating Europe," CESifo Working Paper Series 1114, CESifo Group Munich.
  11. Panu Poutvaara, 2004. "Public Education in an Integrated Europe: Studying for Migration and Teaching for Staying?," Public Economics 0406006, EconWPA.
  12. Nikos Benos, 2004. "Education Policies and Economic Growth," University of Cyprus Working Papers in Economics 4-2004, University of Cyprus Department of Economics.
  13. David Wildasin, 2008. "Public Finance in an Era of Global Demographic Change: Fertility Busts, Migration Booms, and Public Policy," Working Papers 2008-02, University of Kentucky, Institute for Federalism and Intergovernmental Relations.
  14. Silke Uebelmesser, 2003. "Harmonisation of Old-Age Security Within the European Union," CESifo Working Paper Series 1108, CESifo Group Munich.
  15. Andersson, Fredrik & Konrad, Kai A., 2002. "Taxation and education investment in the tertiary sector," Discussion Papers, Research Unit: Market Processes and Governance FS IV 02-17, Social Science Research Center Berlin (WZB).
  16. David E. Wildasin, 2014. "Human Capital Mobility: Implications for Efficiency, Income Distribution, and Policy," CESifo Working Paper Series 4794, CESifo Group Munich.
  17. Wildasin, David, 2014. "Human Capital Mobility: Implications for Efficiency, Income Distribution, and Policy," IZA Discussion Papers 8199, Institute for the Study of Labor (IZA).

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