Promoting Education under Distortionary Taxation: Equality of Opportunity versus Welfarism

Pertti Haaparanta, Ravi Kanbur, Tuuli Paukkeri, Jukka Pirttilä and Matti Tuomala

No 8575, CESifo Working Paper Series from CESifo

Abstract: A common claim in the policy discourse is that a government wishing to achieve equality of opportunity should use public provision of education for equalisation of opportunities rather than income taxation, which only equalizes incomes. We develop a framework in which the tax and education provision rules in the welfarist and non-welfarist/equality of opportunity cases can be transparently compared. We show that in addition to education policies, progressive taxation also plays a role in achieving equality of opportunity, and illustrate how its use may differ under the two objectives. We also show how the provision of public education depends on how private education choices respond, potentially differentially by higher- and lower-income families.

Keywords: educational subsidies; equality of opportunity; income taxation; inequality; public good provision (search for similar items in EconPapers)
JEL-codes: H21 H40 O12 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Promoting education under distortionary taxation: equality of opportunity versus welfarism (2022)
Working Paper: Promoting education under distortionary taxation: Equality of opportunity versus welfarism (2019)
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