Globalization and Human Capital Formation

Fredrik Andersson () and Kai Konrad

No 245, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper compares education investment in closed and open economies without government and with a benevolent government. The fact that the time consistency problem in taxation can make labor mobility beneficial even if governments are fully benevolent - which is known from other contexts - is shown to be true in the economies considered. It is further shown that labor mobility is unambiguously beneficial if private insurance for human capital investment is available.

Keywords: commitment; migration; time consistent income taxation; education effort; Globalization (search for similar items in EconPapers)
JEL-codes: H21 H23 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2001-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published - published in: International Tax and Public Finance, 2003, 10(3), 211-228

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Working Paper: Globalization and Human Capital Formation (2001)
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