Education, redistributive taxation and confidence
[Bildung, Steuerumverteilung und Vertrauen]
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.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: Reichpietschufer 50, 10785 Berlin|
Phone: +49 (0)30 25491-402
Fax: +49 (0)30 25491-400
Web page: http://www.wzb.eu/
More information through EDIRC
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.:
- Benabou, R. & Ok, E.A., 1998.
"Social Mobility and the Demand for Redistribution: The POUM Hypothesis,"
98-23, C.V. Starr Center for Applied Economics, New York University.
- Roland Benabou & Efe A. Ok, 2001. "Social Mobility and the Demand for Redistribution: The Poum Hypothesis," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 447-487.
- 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, 1997. "Social Mobility and the Demand for Redistribution : the POUM Hypothesis," IDEI Working Papers 78, Institut d'Économie Industrielle (IDEI), Toulouse, revised 1999.
- 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.
- Sinn, Hans-Werner, 1996.
"Social Insurance, Incentives and Risk Taking,"
Munich Reprints in Economics
19834, University of Munich, Department of Economics.
- 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.
- 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, Amihai & Konrad, Kai A., 1992. "Intertemporal commitment problems and voting on redistributive taxation," Discussion Papers, Series II 190, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
- 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.
- Varian, Hal R., 1980. "Redistributive taxation as social insurance," Journal of Public Economics, Elsevier, vol. 14(1), pages 49-68, August.
- DIONNE, George & EECKHOUDT, Louis, .
"Self-insurance, self-protection and increased risk aversion,"
CORE Discussion Papers RP
623, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Dionne, Georges & Eeckhoudt, Louis, 1985. "Self-insurance, self-protection and increased risk aversion," Economics Letters, 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.
- Erzo F.P. Luttmer, 1999.
"Group Loyalty and the Taste for Redistribution,"
JCPR Working Papers
61, Northwestern University/University of Chicago Joint Center for Poverty Research.
- 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.
- 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.
- Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
- Pauly, Mark V., 1973. "Income redistribution as a local public good," Journal of Public Economics, Elsevier, vol. 2(1), pages 35-58, February.
- Thomas Piketty, 1995. "Social Mobility and Redistributive Politics," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 551-584.
- Agell, J. & Lommerud, K.E., 1990.
"Union Egalitarianism As Income Insurance,"
1990a, Uppsala - Working Paper Series.
- Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
- Hans-Werner Sinn, 1994.
"A Theory of the Welfare State,"
NBER Working Papers
4856, National Bureau of Economic Research, Inc.
- 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.
- 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.
- Heifetz, A. & Spiegel, Y., 2000. "On the Evolutionary Emergence of Optimism," Papers 2000-24, Tel Aviv.
- Aviad Heifetz & Yossef Spiegel, 2000. "On the Evolutionary Emergence of Optimism," Econometric Society World Congress 2000 Contributed Papers 1649, Econometric Society.
- 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.
- 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:zbw:wzbmpg:spii200505. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.