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Human capital, social mobility and the skill premium

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  • Konstantinos Angelopoulos
  • James Malley
  • Apostolis Philippopoulos

Abstract

This paper considers the role of human capital accumulation of agents differentiated by skill type in the joint determination of social mobility and the skill premium. Our approach allows us to evaluate the dynamic e¤ects of tax reforms and education spending policies on economic e¢ ciency as well as on social and wage inequality. The analysis contributes to the literature by showing that endogenous so- cial mobility, human capital for skilled and unskilled labour, and exter- nalities from skilled human capital on social mobility are key channels through which tax-spending policy is transmitted.

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Bibliographic Info

Paper provided by Business School - Economics, University of Glasgow in its series Working Papers with number 2013_10.

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Date of creation: Jun 2013
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Handle: RePEc:gla:glaewp:2013_10

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Keywords: social mobility; skill premium; tax and education policy;

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  2. Konstantinos Angelopoulos & James R. Malley & Wei Jiang, 2011. "The distributional consequences of tax reforms under market distortions," Working Papers 2011_21, Business School - Economics, University of Glasgow.
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Cited by:
  1. Angelopoulos, Konstantinos & Asimakopoulos, Stylianosulos & Malley, James, 2013. "The Optimal Distribution of the Tax Burden over the Business Cycle," SIRE Discussion Papers 2013-80, Scottish Institute for Research in Economics (SIRE).

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