Redistribution and Subsidies for Higher Education

Carmen Bevia () and Inigo Iturbe-Ormaetxe ()

UFAE and IAE Working Papers from Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC)

Abstract: The financing of higher education through public spending imposes a transfer of resources from taxpayers to university students and their parents. We provide an explanation for this phenomenon. Those who attend higher education will earn more income in the future and will pay more taxes. People whose children do not attend higher education, however should agree to help pay the cost of such education, providing that the taxes are sufficiently high to ensure that there will be an adequate redistribution in favor of their own children at some time in the future.

Keywords: Higher Education; Taxation; Redistribution (search for similar items in EconPapers)
JEL-codes: D71 H21 H52 (search for similar items in EconPapers)
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Related works:
Working Paper: REDISTRIBUTION AND SUBSIDIES FOR HIGHER EDUCATION (2000)
Journal Article: Redistribution and Subsidies for Higher Education (2002)
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Persistent link: http://EconPapers.repec.org/RePEc:aub:autbar:475.01

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