Labour Income Taxation, Human Capital and Growth: The Role of Child Care

Alessandra Casarico and Alessandro Sommacal

No 7039, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper studies the effects of labour income taxation on growth in an OLG model where both formal schooling and child care enter the human capital production function as complements. We compare them with the effects obtained in a model where only formal schooling matters for skill formation. Using a numerical analysis we find that the omission of child care from the technology of skills' formation can significantly bias the results related to the effects of labour income taxation on growth.

Keywords: Child care; Growth; Human capital; Labour supply; Taxation (search for similar items in EconPapers)
JEL-codes: H31 J22 (search for similar items in EconPapers)
Date: 2008-11
New Economics Papers: this item is included in nep-cmp, nep-dge, nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Labor Income Taxation, Human Capital, and Growth: The Role of Childcare (2012)
Working Paper: Labor Income Taxation, Human Capital and Growth: The Role of Child Care (2008)
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