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overall productivity level of the economy. A comprehensive income tax, applying to both labour income and capital income … productivity, the adverse effect of income taxation on human capital investments is significantly magnified …
Persistent link: https://www.econbiz.de/10013245525
overall productivity level of the economy. A comprehensive income tax, applying to both labour income and capital income … productivity, the adverse effect of income taxation on human capital investments is significantly magnified …
Persistent link: https://www.econbiz.de/10012475500
subsidies. -- Labor taxation ; human capital investment ; education subsidies ; idiosyncratic risk ; risk properties of human …
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intuitive decomposition for the wedge between human-capital investment in the laissez faire and the social optimum. This wedge … children's ability. Thus, human capital investment is encouraged more than bequests in the social optimum if human capital is a …
Persistent link: https://www.econbiz.de/10010429793
We show that more human capital improves incentives in a standard optimal taxation problem: common assumptions about preferences and technology imply that the disutility of labor decreases less strongly in unobserved ability if agents have more human capital. Human capital thus reduces the...
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This paper studies how linear tax and education policy should optimally respond to skill-biased technical change (SBTC). SBTC affects optimal taxes and subsidies by changing i) direct distributional benefits, ii) indirect redistributional effects due to wage-(de)compression, and iii) education...
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