Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/37228 
Year of Publication: 
2010
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Education, Taxation and the Labor Market No. A10-V3
Publisher: 
Verein für Socialpolitik, Frankfurt a. M.
Abstract: 
Redistributive taxation and education subsidies are common policies intended to foster education attendance of poor children. However, this paper shows that in an intergenerational framework, these policies can raise social mobility only for some investment situations but not in general. I also study the impact of both policies on the aggregate skill ratio and inequality. While redistributive taxation can raise social mobility but at the same time never reduces inequality, education subsidies can, under some conditions, achieve both simultaneously. Unfortunately, these conditions necessarily require a population in which the skill ratio is already quite high.
Subjects: 
Redistributive taxation
Education subsidies
Intergenerational mobility
Inequality
JEL: 
I21
H24
J62
Document Type: 
Conference Paper

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