Education, redistributive taxation and confidence

Bildung, Steuerumverteilung und Vertrauen

Kai Konrad and Amedeo Spadaro

Discussion Papers, Research Unit: Market Processes and Governance from WZB Berlin Social Science Center

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 overconfident 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)
JEL-codes: D78 H23 I21 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/51117/1/490064876.pdf (application/pdf)

Related works:
Journal Article: Education, redistributive taxation and confidence (2006)
Working Paper: 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)
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:zbw:wzbmpg:spii200505

Access Statistics for this paper

More papers in Discussion Papers, Research Unit: Market Processes and Governance from WZB Berlin Social Science Center Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().