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Optimal Human Capital Policies

Author

Listed:
  • Marek Kapicka

    (UC Santa Barbara)

  • Radim Bohacek

    (CERGE-EI)

Abstract

We calibrate the model to the U.S. economy in order to quantify these policies and evaluate their impact in the transition and in the steady state. We find that, when the optimal schooling policies are implemented jointly with the optimal income taxes then they are negligible and their effect is small. If, however, the income taxes are not set optimally then the optimal schooling subsidies are relatively large and have significant aggregate effects.

Suggested Citation

  • Marek Kapicka & Radim Bohacek, 2007. "Optimal Human Capital Policies," 2007 Meeting Papers 464, Society for Economic Dynamics.
    • Handle: RePEc:red:sed007:464
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    References listed on IDEAS

    as
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