We argue that promoting education may be a means to reduceincome inequality. When workers of different skill levels … areimperfect substitutes in production, an increase in the level ofhuman capital in the economy reduces the return to education … atrade-off between the distortions of taxes on effort and the distortionsof education subsidies on the investment in human …

We argue that promoting education may be a means to reduceincome inequality. When workers of different skill levels … areimperfect substitutes in production, an increase in the level ofhuman capital in the economy reduces the return to education … atrade-off between the distortions of taxes on effort and the distortionsof education subsidies on the investment in human …

We argue that promoting education may be a means to reduceincome inequality. When workers of different skill levels … areimperfect substitutes in production, an increase in the level ofhuman capital in the economy reduces the return to education … atrade-off between the distortions of taxes on effort and the distortionsof education subsidies on the investment in human …

We argue that promoting education may be a means to reduce income equality. When workers of different skill levels are … imperfect substitutes in production, an increase in the level of human capital in the economy reduces the return to education … distortionary effect of progressive income taxation and the distortions arising from education subsidies. The optimal level of …

of education taxes/subsidies. We demonstrate how the government can achieve redistribution through wage compression and …

This paper studies optimal taxation of income and education when employers cannot observe workers' productivity and … workers signal their productivity to firms by choosing both quantity and quality of education. We characterize constrained …. Implementation through income and education dependent taxes is discussed, as well as education mandates. A key insight is that …

In this paper I consider the role of education poli-cies in redistribution of income when individuals differ in two …, the same type of rules that determine optimal edu-cation policies when only ability heterogeneity is considered apply to … optimal alloca-tion of resources to education and not the way the optimal allocations fi rst- and second-best differ. …

In this paper I consider the role of optimal education policies in redistribution when individuals differ in two …, the same type of rules that determine optimal education policies when only ability heterogeneity is considered apply to … the case where both parameters of heterogeneity are considered. This rules imply a widening of the education gap between …