Bovenberg, A.L.Bovenberg; Jacobs, B. - Tilburg University, Center for Economic Research - 2001
We develop a model of human capital formation with endogenous labor supply and heterogeneous agents to explore the … optimal level of education subsidies along with the optimal progressive schedule of the labor income tax and optimal capital … income taxes.Subsidies on education ensure efficiency in human capital accumulation, while taxes on skilled labor help to …