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Title:Investments in the human capital of the socially disadvantaged children: Effects on redistribution PDF Logo
Authors:Lohse, Tim
Lutz, Peter F.
Thomann, Christian
Issue Date:2011
Series/Report no.:WZB Discussion Paper SP II 2011-107
Abstract:Recently, early investments in the human capital of children from socially disadvantaged environments have attracted a great deal of attention. Programs of such early intervention, aiming at children's health and well-being, are spreading considerably in the U.S. and are currently tested in several European countries. In a discrete version of the Mirrlees model with a parents' and a children's generation we show the intra-generational and the inter-generational redistributional consequences of such intervention programs. It turns out that the parents' generation always loses when such intervention programs are implemented. Among the children's generation it is the rich who always benefit. Despite the expectation that early intervention puts the poor descendants in a better position, our analysis reveals that the poor among the children's generation may even be worse off if the effect of early intervention on their productivity is not large enough.
Subjects:Early Intervention
welfare
redistribution
taxation
JEL:I38
J13
H21
I14
Document Type:Working Paper
Appears in Collections:Discussion Papers, Forschungsprofessur & Projekt "The Future of Fiscal Federalism"
Publikationen von Forscherinnen und Forschern des WZB

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