How Responsive is Investment in Schooling to Changes in Redistribution Policies and in Returns
AbstractThis paper uses an unusual pay reform to test the responsiveness of investment in schooling to changes in redistribution schemes that increase the rate of return to education. We exploit an episode where different Israeli kibbutzim shifted from equal sharing to productivity-based wages in different years and find that students in kibbutzim that reformed earlier invested more in education. This effect is stronger for males and is mainly driven by students whose parents have lower levels of education. Our findings support the prediction that education is highly responsive to changes in the redistribution policy, especially for students from weaker backgrounds.
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 National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17093.
Date of creation: May 2011
Date of revision:
Note: CH DAE ED LS PE
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-04 (All new papers)
- NEP-EDU-2011-06-04 (Education)
- NEP-LAB-2011-06-04 (Labour Economics)
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.:
- Jeff Dominitz & Charles F. Manski, 1994.
"Eliciting Student Expectations Of The Returns To Schooling,"
- Jeff Dominitz & Charles F. Manski, 1996. "Eliciting Student Expectations of the Returns to Schooling," Journal of Human Resources, University of Wisconsin Press, vol. 31(1), pages 1-26.
- J. Dominitz & C. F. Manski, . "Eliciting student expectations of the returns to schooling," Institute for Research on Poverty Discussion Papers 1049-94, University of Wisconsin Institute for Research on Poverty.
- Jeff Dominitz & Charles F. Manski, 1994. "Eliciting Student Expectations of the Returns to Schooling," NBER Working Papers 4936, National Bureau of Economic Research, Inc.
- Christian Dustmann & Nikolaos Theodoropoulos, 2010.
"Ethnic minority immigrants and their children in Britain,"
Oxford Economic Papers,
Oxford University Press, vol. 62(2), pages 209-233, April.
- Christian Dustmann & Nikolaos Theodoropoulos, 2006. "Ethnic Minority Immigrants and their Children in Britain," CReAM Discussion Paper Series 0610, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Christian Dustmann & Nikolaos Theodoropoulos, 2008. "Ethnic minority immigrants and their children in Britain," University of Cyprus Working Papers in Economics 7-2008, University of Cyprus Department of Economics.
- Aydemir, Abdurrahman & Sweetman, Arthur, 2006. "First and Second Generation Immigrant Educational Attainment and Labor Market Outcomes: A Comparison of the United States and Canada," IZA Discussion Papers 2298, Institute for the Study of Labor (IZA).
- Victor Lavy & Analia Schlosser, 2005.
"Targeted Remedial Education for Underperforming Teenagers: Costs and Benefits,"
Journal of Labor Economics,
University of Chicago Press, vol. 23(4), pages 839-874, October.
- Lavy, Victor & Schlosser, Analia, 2004. "Targeted Remedial Education for Underperforming Teenagers: Costs and Benefits," CEPR Discussion Papers 4381, C.E.P.R. Discussion Papers.
- Victor Lavy & Analia Schlosser, 2004. "Targeted Remedial Education for Under-Performing Teenagers: Costs and Benefits," NBER Working Papers 10575, National Bureau of Economic Research, Inc.
- Abramitzky, Ran, 2009. "The effect of redistribution on migration: Evidence from the Israeli kibbutz," Journal of Public Economics, Elsevier, vol. 93(3-4), pages 498-511, April.
- Charles T. Clotfelter & Michael Rothschild, 1993. "Studies of Supply and Demand in Higher Education," NBER Books, National Bureau of Economic Research, Inc, number clot93-1.
- Emmanuel Saez & Joel B. Slemrod & Seth H. Giertz, 2009.
"The Elasticity of Taxable Income with Respect to Marginal Tax Rates: A Critical Review,"
NBER Working Papers
15012, National Bureau of Economic Research, Inc.
- Emmanuel Saez & Joel Slemrod & Seth H. Giertz, 2012. "The Elasticity of Taxable Income with Respect to Marginal Tax Rates: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 50(1), pages 3-50, March.
- Sakellaris, Plutarchos & Spilimbergo, Antonio, 2000.
"Business cycles and investment in human capital: international evidence on higher education,"
Carnegie-Rochester Conference Series on Public Policy,
Elsevier, vol. 52(1), pages 221-256, June.
- Plutarchos Sakellaris & Antonio Spilimbergo, 1999. "Business Cycles and Investment in Human Capital: International Evidence on Higher Education," Electronic Working Papers 99-009, University of Maryland, Department of Economics.
- Orazio Attanasio & Katja Kaufmann, 2009. "Educational Choices, Subjective Expectations, and Credit Constraints," NBER Working Papers 15087, National Bureau of Economic Research, Inc.
- Ran Abramitzky, 2008. "The Limits of Equality: Insights from the Israeli Kibbutz," The Quarterly Journal of Economics, MIT Press, vol. 123(3), pages 1111-1159, August.
- Christopher Avery & Thomas J. Kane, 2004. "Student Perceptions of College Opportunities. The Boston COACH Program," NBER Chapters, in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 355-394 National Bureau of Economic Research, Inc.
- Moock, Peter R. & Patrinos, Harry Anthony & Venkataraman, Meera, 1998. "Education and earnings in a transition economy (Vietnam)," Policy Research Working Paper Series 1920, The World Bank.
- Brainerd, Elizabeth, 1998. "Winners and Losers in Russia's Economic Transition," American Economic Review, American Economic Association, vol. 88(5), pages 1094-1116, December.
If references are entirely missing, you can add them using this form.