Education, redistributive taxation and confidence

Kai Konrad and Amadéo Spadaro
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Amadéo Spadaro: PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique, UIB - Universitat de les Illes Balears = Universidad de las Islas Baleares = University of the Balearic Islands

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Abstract: We consider redistributional taxation between people with and without human capital if education is endogenous and if individuals differ in their perceptions about own ability. Those who see their ability as low like redistributive taxation because of the transfers it generates. Those who see their ability as high may also like redistributive taxation because it stops other people receiving education and increases the quasi rents on their own human capital. It is surprising that this rather indirect effect can overcompensate them for the income loss from taxation and make the highly confident want higher taxes than the less confident do. The results, however, turn out to be in line with empirical evidence on the desired amount of redistribution among young individuals.

Keywords: Education; Redistribution; Confidence (search for similar items in EconPapers)
Date: 2006-01
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Citations: View citations in EconPapers (4)

Published in Journal of Public Economics, 2006, 90 (1-2), pp.171-188. ⟨10.1016/j.jpubeco.2005.03.003⟩

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Journal Article: Education, redistributive taxation and confidence (2006)
Working Paper: Education, redistributive taxation and confidence (2005)
Working Paper: Education, redistributive taxation and confidence (2005)
Working Paper: Education, Redistributive Taxation and Confidence (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00754180

DOI: 10.1016/j.jpubeco.2005.03.003

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