The effects of a tax deduction for lifelong learning expenditures

Wiljan van den Berge, Egbert Jongen () and Karen van der Wiel
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Egbert Jongen: CPB Netherlands Bureau for Economic Policy Analysis

International Tax and Public Finance, 2023, vol. 30, issue 3, No 5, 729-756

Abstract: Abstract We study the effects of a tax deduction for lifelong learning, exploiting exogenous variation in the effective costs of lifelong learning due to jumps in tax bracket rates. We use a regression kink design and tax return data on the universe of Dutch taxpayers. Low-income individuals show no response, but high-income individuals are more likely to report lifelong learning expenditures (though not a higher amount) when net costs are lower. Furthermore, for high-income individuals the effect peaks at the age interval 40–45 years of age.

Keywords: Lifelong learning; Tax deduction; Regression kink design (search for similar items in EconPapers)
JEL-codes: C21 H20 J24 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10797-022-09736-y

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