Investments in the Human Capital of the Socially Disadvantaged Children - Effects on Redistribution

Tim Lohse, Peter F. Lutz and Christian Thomann

Hannover Economic Papers (HEP) from Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät

Abstract: Recently, early investments in the human capital of children from socially disadvantaged environments have attracted a great deal of attention. In a discrete version of the Mirrlees model with a parents' and a children's generation we show the intra-generational and the inter-generational redistributional consequences of such intervention programs. It turns out that the parents' generation always loses when such intervention programs are implemented. Among the children's generation it is the rich who always benefit. Despite the expectation that early intervention puts the poor descendants in a better position, our analysis reveals that the poor among the children's generation may even be worse off if the effect of early intervention on their productivity is not large enough.

Keywords: Early Intervention; Welfare; Redistribution; Taxation (search for similar items in EconPapers)
JEL-codes: H21 I14 I38 J13 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2011-11
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Related works:
Journal Article: Redistributional consequences of early childhood intervention (2013)
Working Paper: Investments in the Human Capital of the Socially Disadvantaged Children - Effects on Redistribution (2011)
Working Paper: Investments in the human capital of the socially disadvantaged children: Effects on redistribution (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:han:dpaper:dp-484

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