Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73133
Authors: 
Lohse, Tim
Lutz, Peter F.
Thomann, Christian
Year of Publication: 
2011
Series/Report no.: 
Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät, Universität Hannover 484
Abstract: 
Recently, early investments in the human capital of children from socially disadvantaged environments have attracted a great deal of attention. 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

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