Logo Logo
Switch Language to German
Poutvaara, Panu (2004): Educating Europe: Should Public Education be Financed with Graduate Taxes or Income-contingent Loans? In: CESifo Economic Studies, Vol. 50, No. 4: pp. 663-684
Full text not available from 'Open Access LMU'.


The mobility of labor reduces national incentives to invest in internationally applicable education. The European Union could overcome this by allowing member states to institute graduate taxes or income-contingent loans, collected also from migrants. Graduate taxes or income-contingent loans result in higher welfare than financing education with employment-based taxes. (JEL H 24, H 52, I 28, F 22)