Educating Europe: Should Public Education be Financed with Graduate Taxes or Income-contingent Loans?

Panu Poutvaara

CESifo Economic Studies, 2004, vol. 50, issue 4, 663-684

Abstract: The mobility of labor reduces national incentives to invest in internationally applicable education. The European Union could overcome this by allowing member states to institute graduate taxes or income-contingent loans, collected also from migrants. Graduate taxes or income-contingent loans result in higher welfare than financing education with employment-based taxes. (JEL H24, H52, I28, F22)

Date: 2004
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