Human Capital and Optimal Redistribution

Winfried Koeniger and Julien Prat

VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: We characterize optimal redistribution in a dynastic economy with observable human capital and hidden ability. We compute the optimal allocation and show how it can be implemented with student loans or means-tested grants. The numerical results reveal that human capital investment should decline in parental income because parents with high income bequeath more and this lowers the labor supply of their children through a wealth effect.

JEL-codes: E24 H21 I22 J24 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-cta, nep-dge, nep-hrm and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Human Capital and Optimal Redistribution (2018)
Working Paper: Human Capital and Optimal Redistribution (2015)
Working Paper: Human Capital and Optimal Redistribution (2015)
Working Paper: Human Capital and Optimal Redistribution (2014)
Working Paper: Human Capital and Optimal Redistribution (2014)
Working Paper: Human capital and optimal redistribution (2014)
Working Paper: Human Capital and Optimal Redistribution (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168073

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