A Case for Taxing Education
We illustrate a novel informational feature of education, which the government may utilize. Discretionary decisions of individuals to acquire education may serve as an additional signal (to earned labor income) on the underlying unobserved innate earning ability, thereby mitigating the informational constraint faced by the government. We establish a case for taxing education, as a supplement to the labor income tax.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo.de
More information through EDIRC
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.:
- Barham, Vicky & Boadway, Robin & Marchand, Maurice & Pestieau, Pierre, 1995.
"Education and the poverty trap,"
European Economic Review,
Elsevier, vol. 39(7), pages 1257-1275, August.
- Razin,Assaf & Sadka,Efraim, 2001.
"Labor, Capital, and Finance,"
Cambridge University Press, number 9780521785570.
- Gradstein, Mark, 2000. "An economic rationale for public education: The value of commitment," Journal of Monetary Economics, Elsevier, vol. 45(2), pages 463-474, April.
- Tuomala, Matti, 1986. "On the optimal income taxation and educational decisions," Journal of Public Economics, Elsevier, vol. 30(2), pages 183-198, July.
- Boadway, R. & Marchand, M., 1990.
"The use of public expenditures for distributive purposes,"
CORE Discussion Papers
1990066, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Boadway, Robin & Marchand, Maurice, 1995. "The Use of Public Expenditures for Redistributive Purposes," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 45-59, January.
- Robin W. Boadway & Maurice Marchand, 1990. "The Use of Public Expenditure for Distributive Purpose," Working Papers 796, Queen's University, Department of Economics.
- Ulph, David, 1977. "On the optimal distribution of income and educational expenditure," Journal of Public Economics, Elsevier, vol. 8(3), pages 341-356, December.
- Pedro Carneiro & James J. Heckman, 2002.
"The Evidence on Credit Constraints in Post-Secondary Schooling,"
NBER Working Papers
9055, National Bureau of Economic Research, Inc.
- Pedro Carneiro & James J. Heckman, 2002. "The Evidence on Credit Constraints in Post--secondary Schooling," Economic Journal, Royal Economic Society, vol. 112(482), pages 705-734, October.
- Carneiro, Pedro & Heckman, James J., 2002. "The Evidence on Credit Constraints in Post-Secondary Schooling," IZA Discussion Papers 518, Institute for the Study of Labor (IZA).
- James J. Heckman, 2000.
"Policies to Foster Human Capital,"
JCPR Working Papers
154, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Deaton, Angus, 1979. "Optimally uniform commodity taxes," Economics Letters, Elsevier, vol. 2(4), pages 357-361.
- Deaton, Angus, 1981.
"Optimal Taxes and the Structure of Preferences,"
Econometric Society, vol. 49(5), pages 1245-60, September.
- Brett, Craig & Weymark, John A., 2003.
"Financing education using optimal redistributive taxation,"
Journal of Public Economics,
Elsevier, vol. 87(11), pages 2549-2569, October.
- Craig Brett & John A. Weymark, 2000. "Financing Education Using Optimal Redistributive Taxation," Vanderbilt University Department of Economics Working Papers 0038, Vanderbilt University Department of Economics, revised May 2001.
- Saint-Paul, G., 1993.
"Unemployment, Wage Rigidity, and the Returns to Education,"
DELTA Working Papers
93-11, DELTA (Ecole normale supérieure).
- Saint-Paul, Gilles, 1994. "Unemployment, wage rigidity, and the returns to education," European Economic Review, Elsevier, vol. 38(3-4), pages 535-543, April.
- Zvi Eckstein & Itzhak Zilcha, 1991.
"The Effects of Compulsory Schooling on Growth, Income Distribution and Welfare,"
Boston University - Institute for Economic Development
20, Boston University, Institute for Economic Development.
- Eckstein, Zvi & Zilcha, Itzhak, 1994. "The effects of compulsory schooling on growth, income distribution and welfare," Journal of Public Economics, Elsevier, vol. 54(3), pages 339-359, July.
- Eckstein, Z. & Zilcha, I., 1991. "The Effects of Compulsury Schooling on Growth Income Distribution and Welfare," Papers 38-91, Tel Aviv.
- Mirrlees, James A, 1971. "An Exploration in the Theory of Optimum Income Taxation," Review of Economic Studies, Wiley Blackwell, vol. 38(114), pages 175-208, April.
- Mark Gradstein, 1999. "An Economic Rationale for Public Education: The Value of Commitment," CESifo Working Paper Series 209, CESifo Group Munich.
- Saez, Emmanuel, 2001.
"Using Elasticities to Derive Optimal Income Tax Rates,"
Review of Economic Studies,
Wiley Blackwell, vol. 68(1), pages 205-29, January.
- Emmanuel Saez, 2000. "Using Elasticities to Derive Optimal Income Tax Rates," NBER Working Papers 7628, National Bureau of Economic Research, Inc.
- Boadway, Robin & Marceau, Nicolas & Marchand, Maurice, 1996.
"Investment in Education and the Time Inconsistency of Redistributive Tax Policy,"
London School of Economics and Political Science, vol. 63(250), pages 171-89, May.
- Robin Boadway & Nicolas Marceau & Maurice Marchand, 1992. "Investment in Education and the Time Inconsistency of Redistributive Tax Policy," Working Papers 860, Queen's University, Department of Economics.
- Atkinson, A. B. & Stiglitz, J. E., 1976. "The design of tax structure: Direct versus indirect taxation," Journal of Public Economics, Elsevier, vol. 6(1-2), pages 55-75.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_1440. 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: (Julio Saavedra)
If references are entirely missing, you can add them using this form.