Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/39564
Authors: 
Poutvaara, Panu
Year of Publication: 
2005
Series/Report no.: 
ZEI working paper B 03-2005
Abstract: 
An increasing international applicability of a given type of education encourages students to invest more effort when studying. Governments, on the other hand, face an incentive to divert the provision of public education away from internationally applicable education toward country-specific skills. This would mean educating too few engineers, economists and doctors, and too many lawyers. If the total tax rate is kept constant, then replacing part of existing wage taxes with graduate taxes or income-contingent loans, collected also from migrants, would improve efficiency. It could even allow for a Pareto-improvement.
Subjects: 
Public education
Migration
Brain drain and brain gain
European Union
JEL: 
H24
H52
I28
F22
Document Type: 
Working Paper

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