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Optimal educational choice and redistribution when parental education matters

Del Rey, Elena and Racionero, Maria del Mar 2002, Optimal educational choice and redistribution when parental education matters, Oxford economic papers, vol. 54, no. 3, pp. 435-448, doi: 10.1093/oep/54.3.435.

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Title Optimal educational choice and redistribution when parental education matters
Author(s) Del Rey, Elena
Racionero, Maria del Mar
Journal name Oxford economic papers
Volume number 54
Issue number 3
Start page 435
End page 448
Publisher Oxford University Press
Place of publication Oxford, England
Publication date 2002-07-01
ISSN 0030-7653
1464-3812
Summary Higher education plays an important role in determining lifetime earnings. In turn, the decision to become educated depends to a large extent on family characteristics, such as wealth and education. In this paper, we focus on the interaction between fiscal policies and educational choices when parental education matters. We derive optimality conditions for a linear income tax and a lump‐sum subsidy for education in a dynamic framework in which generations are linked by educational background. The factors that determine their sign and magnitude include concerns for redistribution, efficiency, and the educational externality on future generations.
Language eng
DOI 10.1093/oep/54.3.435
Field of Research 140299 Applied Economics not elsewhere classified
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2002, Oxford University Press
Persistent URL http://hdl.handle.net/10536/DRO/DU:30008495

Document type: Journal Article
Collection: School of Economics
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