EconPapers    
Economics at your fingertips  
 

Intergenerational transmission of skills during childhood and optimal public policy

Alessandra Casarico (), Luca Micheletto and Alessandro Sommacal ()

No 2011:3, Working Paper Series, Center for Fiscal Studies from Uppsala University, Department of Economics

Abstract: The paper characterizes the optimal tax policy and the optimal quality of day care services in a OLG model with warm-glow altruism where parental choices over child care arrangements affect the probability that the child becomes a high-skilled adult in a type-specific way. With respect to previous contributions, optimal tax formulas include type-specific Pigouvian terms which correct for the intergenerational externality in human capital accumulation. Our numerical simulations suggest that a public policy that disregards the effects of parental time on children's human capital entails a welfare loss that ranges from 0:2% to 5:7% of aggregate consumption.

Keywords: optimal taxation; day care quality; intergenerational transmission of skills; early childhood environment; warm-glow (search for similar items in EconPapers)
JEL-codes: H21 H23 J13 J22 J24 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2011-02-04
New Economics Papers: this item is included in nep-cis, nep-cmp, nep-dge and nep-lab
References: Add references at CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Published as Casarico, Alessandra, Luca Micheletto and Alessandro Sommacal, 'Intergenerational transmission of skills during childhood and optimal public policy' in Journal of Population Economics , 2015, pages 353-372.

Downloads: (external link)
http://www.nek.uu.se/Pdf/wp20113ucfs.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.nek.uu.se/Pdf/wp20113ucfs.pdf [302 Found]--> https://www.nek.uu.se/Pdf/wp20113ucfs.pdf)

Related works:
Journal Article: Intergenerational transmission of skills during childhood and optimal public policy (2015) Downloads
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:hhs:uufswp:2011_003

Access Statistics for this paper

More papers in Working Paper Series, Center for Fiscal Studies from Uppsala University, Department of Economics Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Katarina Grönvall (). This e-mail address is bad, please contact .

 
Page updated 2020-02-16
Handle: RePEc:hhs:uufswp:2011_003