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Labour Income Taxation, Human Capital and Growth: The Role of Child Care

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  • Casarico, Alessandra
  • Sommacal, Alessandro

Abstract

This paper studies the effects of labour income taxation on growth in an OLG model where both formal schooling and child care enter the human capital production function as complements. We compare them with the effects obtained in a model where only formal schooling matters for skill formation. Using a numerical analysis we find that the omission of child care from the technology of skills' formation can significantly bias the results related to the effects of labour income taxation on growth.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7039.

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Date of creation: Nov 2008
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Handle: RePEc:cpr:ceprdp:7039

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Keywords: child care; growth; human capital; labour supply; taxation;

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Citations

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Cited by:
  1. Alessandra Casarico & Luca Micheletto & Alessandro Sommacal, 2011. "Intergenerational Transmission of Skills during Childhood and Optimal Public Policy," CESifo Working Paper Series 3343, CESifo Group Munich.
  2. Alessandra Casarico & Alessandro Sommacal, 2014. "Taxation and Parental Time Allocation under Different Assumptions on Altruism," CESifo Working Paper Series 4690, CESifo Group Munich.
  3. Marina Della Giusta & Nigar Hashimzade & Sarah Jewell, 2011. "Why Care? Social Norms, Relative Income and the Supply of Unpaid Care," Economics & Management Discussion Papers, Henley Business School, Reading University em-dp2011-03, Henley Business School, Reading University.
  4. Marina Della Giusta & Nigar Hashimzade, 2012. "Who Cares? Modelling the Care Drain," Economics & Management Discussion Papers, Henley Business School, Reading University em-dp2012-04, Henley Business School, Reading University.
  5. repec:rdg:wpaper:em-dp2011-03 is not listed on IDEAS

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