Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/23717
Authors: 
Schneider, Andrea
Year of Publication: 
2007
Series/Report no.: 
Diskussionspapier / Helmut-Schmidt-Universität Hamburg, Fächergruppe Volkswirtschaftslehre 68
Abstract: 
Education decisions determine a great part of future income. This paper argues that if education is financed by parents' current income a lump-sum tax reduces inequality if all parents have strict investment incentives. However, if some parents are indifferent there is a possible decrease in the wage gap via a contrary indirect tax effect which drops the returns of schooling. Under strict incentives social mobility is not affected, but it increases if skilled parents have weak incentives and decreases if unskilled parents are indifferent in their investment decision.
Subjects: 
Intergenerational mobility
Inequality
Redistribution
Lumpsum tax
JEL: 
H23
H31
D31
D91
I21
J24
J62
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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