Abstract
I analyze a two-period model in which risk-averse students divide their time between risky education, leisure, and work. The educated can migrate. Wage-tax financed transfer to students acts as an insurance, and increases both human capital investment and demand for leisure. I derive sufficient conditions for tax competition to lead to inefficiently low wage tax rates. I suggest that the educated should pay their wage taxes to the region which has financed their education. I show that this would increase taxation and human capital investment, and would also benefit the owners of the complementary factor.
Dokumententyp: | Zeitschriftenartikel |
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Fakultät: | Volkswirtschaft
Volkswirtschaft > Lehrstühle > CESifo-Professur für Vergleichende Institutionenökonomik |
Themengebiete: | 300 Sozialwissenschaften > 330 Wirtschaft |
Sprache: | Englisch |
Dokumenten ID: | 19302 |
Datum der Veröffentlichung auf Open Access LMU: | 15. Apr. 2014, 08:49 |
Letzte Änderungen: | 04. Nov. 2020, 13:00 |