Investments in the Human Capital of the Socially Disadvantaged Children - Effects on Redistribution
AbstractRecently, early investments in the human capital of children from socially disadvantaged environments have attracted a great deal of attention. Programs of such early intervention are spreading considerably in the U.S. and are currently tested in several European countries. In a discrete version of the Mirrlees model with a parents' and a children's generation we show the intra-generational and the inter-generational redistributional consequences of such intervention programs. It turns out that the parents' generation always loses when such intervention programs are implemented. Among the children's generation it is the rich who always benefit. Despite the expectation that early intervention puts the poor descendants in a better position, our analysis reveals that the poor among the children's generation may even be worse off if the effect of early intervention on their productivity is not large enough.
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Bibliographic InfoPaper provided by Max Planck Institute for Tax Law and Public Finance in its series Working Papers with number investments_in_the_human_capital_of_the_socially_disadvantaged_children.
Length: 24 pages
Date of creation: Oct 2011
Date of revision:
Early Intervention; Welfare; Redistribution; Taxation;
Other versions of this item:
- Lohse, Tim & Lutz, Peter F. & Thomann, Christian, 2011. "Investments in the Human Capital of the Socially Disadvantaged Children - Effects on Redistribution," Diskussionspapiere der Wirtschaftswissenschaftlichen FakultÃ¤t der Leibniz UniversitÃ¤t Hannover dp-484, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- Lohse, Tim & Lutz, Peter F. & Thomann, Christian, 2011. "Investments in the human capital of the socially disadvantaged children: Effects on redistribution," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2011-107, Social Science Research Center Berlin (WZB).
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-25 (All new papers)
- NEP-DEM-2012-01-25 (Demographic Economics)
- NEP-HRM-2012-01-25 (Human Capital & Human Resource Management)
You can help add them by filling out this form.
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