Publikation: Risky Human Capital Formation Requires Siamese Twins
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2007
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Zusammenfassung
Based on the OLG-model and the two-bracket labor tax system by Nielsen and Sørensen (1997), we model an economy, where human capital formation is liable to idiosyncratic risk. We show that, compared to a standard Eaton and Rosen (1980) world, extending the instruments available for the government to progressive taxation and education subsidies generalizes the Siamese Twins -result by Bovenberg and Jacobs (2005) to the case of risky labor income. Hereby, progressivity is a superior instrument for insurance, and education subsidies are again used in order to alleviate efficiency losses.
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330 Wirtschaft
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progressive labor taxation, human capital investment, education subsidies, idiosyncratic risk
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SCHINDLER, Dirk, Hongyan YANG, 2007. Risky Human Capital Formation Requires Siamese TwinsBibTex
@techreport{Schindler2007Risky-11975,
year={2007},
series={Diskussionspapiere der DFG-Forschergruppe Heterogene Arbeit},
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author={Schindler, Dirk and Yang, Hongyan}
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<dcterms:abstract xml:lang="eng">Based on the OLG-model and the two-bracket labor tax system by Nielsen and Sørensen (1997), we model an economy, where human capital formation is liable to idiosyncratic risk. We show that, compared to a standard Eaton and Rosen (1980) world, extending the instruments available for the government to progressive taxation and education subsidies generalizes the Siamese Twins -result by Bovenberg and Jacobs (2005) to the case of risky labor income. Hereby, progressivity is a superior instrument for insurance, and education subsidies are again used in order to alleviate efficiency losses.</dcterms:abstract>
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