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Educating Europe

Author

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  • Panu Poutvaara

    (Centre for Economic and Business Research)

Abstract

The mobility of labor reduces national incentives to invest in internationally applicable education. Such effects may be especially severe for the prospective new member states of the European Union. The European Union could overcome this by allowing countries to institute graduate taxes or income-contingent loans, collected also from migrants. This paper presents calculations on how such a system could look like for Finland, as well as discusses its implementation. Such contracts could be voluntary, education financed publicly only for those accepting also to share the returns. With EU enlargement, such reforms could generate a triple dividend.

Suggested Citation

  • Panu Poutvaara, 2003. "Educating Europe," Public Economics 0302008, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwppe:0302008
    Note: Type of Document - Pdf; prepared on IBM PC ; to print on Xerox3N1; pages: 37 ; figures: none. Available also as CEBR DP 2003-01
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    graduate taxes; European Union; individual accounts; income- contingent loans; migration;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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