Education, redistributive taxation and confidence
We 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.
(This abstract was borrowed from another version of this item.)
References listed on IDEAS
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.:
- 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.
- 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.
- 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 A, 1998. "Social Mobility and the Demand for Redistribution: the POUM Hypothesis," CEPR Discussion Papers 1955, C.E.P.R. Discussion Papers.
- Benabou, R. & Ok, E.A., 1998. "Social Mobility and the Demand for Redistribution: The POUM Hypothesis," Working Papers 98-23, C.V. Starr Center for Applied Economics, New York University.
- Agell, J. & Lommerud, K.E., 1990.
"Union Egalitarianism As Income Insurance,"
1990a, Uppsala - Working Paper Series.
- Sinn, Hans-Werner, 1995.
" A Theory of the Welfare State,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 97(4), pages 495-526, December.
- Piketty, Thomas, 1995.
"Social Mobility and Redistributive Politics,"
The Quarterly Journal of Economics,
MIT Press, vol. 110(3), pages 551-84, August.
- 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.
- 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.
- Erzo F.P. Luttmer, 1999.
"Group Loyalty and the Taste for Redistribution,"
9902, Harris School of Public Policy Studies, University of Chicago.
- Dionne, Georges & Eeckhoudt, Louis, 1985.
"Self-insurance, self-protection and increased risk aversion,"
Elsevier, vol. 17(1-2), pages 39-42.
- Dionne, G. & Eeckhoudt, L., 1984. "Self-Insurance, Self-Protection and Increased Risk Aversion," Cahiers de recherche 8424, Universite de Montreal, Departement de sciences economiques.
- 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.
- 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.
- Heifetz, A. & Spiegel, Y., 2000. "On the Evolutionary Emergence of Optimism," Papers 2000-24, Tel Aviv.
- Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
- 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.
- Hans-Werner Sinn, 1996.
"Social insurance, incentives and risk taking,"
International Tax and Public Finance,
Springer, vol. 3(3), pages 259-280, July.
- Varian, Hal R., 1980. "Redistributive taxation as social insurance," Journal of Public Economics, Elsevier, vol. 14(1), pages 49-68, August.
- Pauly, Mark V., 1973. "Income redistribution as a local public good," Journal of Public Economics, Elsevier, vol. 2(1), pages 35-58, February.
- Aviad Heifetz & Yossef Spiegel, 2000. "On the Evolutionary Emergence of Optimism," Econometric Society World Congress 2000 Contributed Papers 1649, Econometric Society.
- 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.
- Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
- Piketty, Thomas, 1999. "Attitudes toward income inequality in France: Do people really disagree?," CEPREMAP Working Papers (Couverture Orange) 9918, CEPREMAP.
- Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
- 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.
- Francesco Squintani, 1999. "On-the-Job Signaling and Self-Confidence," Discussion Papers 1274, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
When requesting a correction, please mention this item's handle: RePEc:eee:pubeco:v:90:y:2006:i:1-2:p:171-188. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.