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Globalization and Human Capital Formation

  • Andersson, Fredrik


    (Lund University)

  • Konrad, Kai A.


    (Max Planck Institute for Tax Law and Public Finance)

This paper compares education investment in closed and open economies without government and with a benevolent government. The fact that the time consistency problem in taxation can make labor mobility beneficial even if governments are fully benevolent - which is known from other contexts - is shown to be true in the economies considered. It is further shown that labor mobility is unambiguously beneficial if private insurance for human capital investment is available.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 245.

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Length: 28 pages
Date of creation: Jan 2001
Date of revision:
Publication status: published in: International Tax and Public Finance, 2003, 10(3), 211-228
Handle: RePEc:iza:izadps:dp245
Contact details of provider: Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
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References listed on IDEAS
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