Education, Redistributive Taxation and Confidence
AbstractWe consider redistributional taxation between people with and without human capital if education is endogenous and if individuals differ in their perceptions about own ability. Those who see their ability as low like redistributive taxation because of the transfers it generates. Those who see their ability as high may also like redistributive taxation because it stops other people receiving education and increases the quasi rents on their own human capital. It is surprising that this rather indirect effect can overcompensate them for the income loss from taxation and make the overconfident want higher taxes than the less confident do. The results, however, turn out to be in line with empirical evidence on the desired amount of redistribution among young individuals.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1478.
Length: 25 pages
Date of creation: Jan 2005
Date of revision:
Publication status: published in: Journal of Public Economics, 2006, 90(1-2), 171-188
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- Konrad, Kai Andreas & Spadaro, Amedeo, 2005. "Education, redistributive taxation and confidence," Discussion Papers, Research Unit: Market Processes and Governance SP II 2005-05, Social Science Research Center Berlin (WZB).
- Kai A. Konrad & Amadéo Spadaro, 2005. "Education, redistributive taxation and confidence," PSE Working Papers halshs-00590862, HAL.
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-02-01 (All new papers)
- NEP-EDU-2005-02-01 (Education)
- NEP-LAB-2005-02-01 (Labour Economics)
- NEP-MIC-2005-02-01 (Microeconomics)
- NEP-PBE-2005-02-01 (Public Economics)
- NEP-PUB-2005-02-01 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Agell, J. & Lommerud, K.E., 1990.
"Union Egalitarianism As Income Insurance,"
1990a, Uppsala - Working Paper Series.
- Piketty, Thomas, 1995.
"Social Mobility and Redistributive Politics,"
The Quarterly Journal of Economics,
MIT Press, vol. 110(3), pages 551-84, August.
- Hochman, Harold M & Rodgers, James D, 1974. "Redistribution and the Pareto Criterion," American Economic Review, American Economic Association, vol. 64(4), pages 752-57, September.
- Piketty, Thomas, 1999. "Attitudes toward income inequality in France: Do people really disagree?," CEPREMAP Working Papers (Couverture Orange) 9918, CEPREMAP.
- Sinn, Hans-Werner, 1995.
"A Theory of the Welfare State,"
CEPR Discussion Papers
1278, C.E.P.R. Discussion Papers.
- Erzo F.P. Luttmer, 1999.
"Group Loyalty and the Taste for Redistribution,"
9902, Harris School of Public Policy Studies, University of Chicago.
- Pauly, Mark V., 1973. "Income redistribution as a local public good," Journal of Public Economics, Elsevier, vol. 2(1), pages 35-58, February.
- Hans-Werner Sinn, 1995.
"Social Insurance, Incentives, and Risk Taking,"
NBER Working Papers
5335, National Bureau of Economic Research, Inc.
- Aviad Heifetz & Yossef Spiegel, 2000. "On the Evolutionary Emergence of Optimism," Econometric Society World Congress 2000 Contributed Papers 1649, Econometric Society.
- Francesco Squintani, 1999. "On-the-Job Signaling and Self-Confidence," Discussion Papers 1274, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Dionne, Georges & Eeckhoudt, Louis, 1985.
"Self-insurance, self-protection and increased risk aversion,"
Elsevier, vol. 17(1-2), pages 39-42.
- DIONNE, George & EECKHOUDT, Louis, . "Self-insurance, self-protection and increased risk aversion," CORE Discussion Papers RP -623, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Dionne, G. & Eeckhoudt, L., 1984. "Self-Insurance, Self-Protection and Increased Risk Aversion," Cahiers de recherche 8424, Universite de Montreal, Departement de sciences economiques.
- Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
- Benabou, R. & Ok, E.A., 1998.
"Social Mobility and the Demand for Redistribution: The POUM Hypothesis,"
98-23, C.V. Starr Center for Applied Economics, New York University.
- Roland Bénabou & Efe A. Ok, 2001. "Social Mobility And The Demand For Redistribution: The Poum Hypothesis," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 447-487, May.
- Roland Benabou & Efe A. Ok, 1998. "Social Mobility and the Demand for Redistribution: The POUM Hypothesis," NBER Working Papers 6795, National Bureau of Economic Research, Inc.
- Bénabou, Roland & Ok, Efe, 1997. "Social Mobility and the Demand for Redistribution : the POUM Hypothesis," IDEI Working Papers 78, Institut d'Économie Industrielle (IDEI), Toulouse, revised 1999.
- Bénabou, Roland & Ok, Efe A, 1998. "Social Mobility and the Demand for Redistribution: the POUM Hypothesis," CEPR Discussion Papers 1955, C.E.P.R. Discussion Papers.
- Heifetz, A. & Spiegel, Y., 2000. "On the Evolutionary Emergence of Optimism," Papers 2000-24, Tel Aviv.
- Ravallion, Martin & Lokshin, Michael, 2000. "Who wants to redistribute?: The tunnel effect in 1990s Russia," Journal of Public Economics, Elsevier, vol. 76(1), pages 87-104, April.
- Sjur Didrik Flåm & Alf Erling Risa, 2003.
"Ability, Self-Confidence, and Search,"
Journal of Institutional and Theoretical Economics (JITE),
Mohr Siebeck, Tübingen, vol. 159(3), pages 439-, September.
- Flam, S.D. & Risa, A.E., 2001. "Ability, Self-confidence and Search," Norway; Department of Economics, University of Bergen 1601, Department of Economics, University of Bergen.
- Aviad Heifetz & Yossi Spiegel, 2000. "On the Evolutionary Emergence of Optimism," Discussion Papers 1304, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October.
- Glazer, A. & Konrad, K.A., 1991.
"Intertemporal Commitment Problems and Voting on Redistributive Taxation,"
GSIA Working Papers
1992-10, Carnegie Mellon University, Tepper School of Business.
- Glazer Amihai & Konrad Kai A., 1994. "Intertemporal Commitment Problems and Voting on Redistributive Taxation," Journal of Urban Economics, Elsevier, vol. 36(3), pages 278-291, November.
- Varian, Hal R., 1980. "Redistributive taxation as social insurance," Journal of Public Economics, Elsevier, vol. 14(1), pages 49-68, August.
- Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
- Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
- Salvador Balle & Amedeo Spadaro, 2006.
"Optimal Nonlinear Labor Income Taxation in Dynamic Economies,"
19, ECINEQ, Society for the Study of Economic Inequality.
- Salvador Ball & Amadéo Spadaro, 2006. "Optimal nonlinear labor income taxation in dynamic economies," PSE Working Papers halshs-00590555, HAL.
- repec:hal:wpaper:halshs-00590555 is not listed on IDEAS
- Schneider, Andrea, 2010. "Redistributive taxation vs. education subsidies: Fostering equality and social mobility in an intergenerational model," Economics of Education Review, Elsevier, vol. 29(4), pages 597-605, August.
- Falch, Torberg & Fischer, Justina AV, 2011. "Welfare state generosity and student performance: Evidence from international student tests," MPRA Paper 35269, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.