Income Taxation, Tuition Subsidies, and Choice of Occupation

Geir Haakon Bjertnæs
Additional contact information
Geir Haakon Bjertnæs: Statistics Norway

Public Finance Review, 2006, vol. 34, issue 5, 574-599

Abstract: Differentiated tax rates on labor and capital income are found to be optimal in this study, where agents choose occupation based on lifetime income net of tuition costs. Efficient revenue raising in a case where the government cannot observe educational effort implies that the government should trade off efficiency in production for efficiency in intertemporal consumption. The subsequent wage difference between high- and low-skilled occupations is increased compared to a production efficient outcome, which is in contrast to previous results in the literature.

Keywords: optimal income taxation; subsidies for tuition; skill formation; production efficiency (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/1091142106289170 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:34:y:2006:i:5:p:574-599

DOI: 10.1177/1091142106289170

Access Statistics for this article

More articles in Public Finance Review
Bibliographic data for series maintained by SAGE Publications ().