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Redistributive taxation vs. education subsidies: Fostering equality and social mobility in an intergenerational model

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  • Schneider, Andrea

Abstract

Redistributive taxation and education subsidies are common policies intended to foster education attendance of poor children. However, this paper shows that in an intergenerational framework, these policies can raise social mobility only for some investment situations but not in general. I also study the impact of both policies on the aggregate skill ratio and inequality. While redistributive taxation can raise social mobility but at the same time never reduces inequality, education subsidies can, under some conditions, achieve both simultaneously. Unfortunately, these conditions necessarily require a population in which the skill ratio is already quite high.

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  • Schneider, Andrea, 2010. "Redistributive taxation vs. education subsidies: Fostering equality and social mobility in an intergenerational model," Economics of Education Review, Elsevier, vol. 29(4), pages 597-605, August.
    • Handle: RePEc:eee:ecoedu:v:29:y:2010:i:4:p:597-605
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    Cited by:

    1. Adel Ben Youssef & Thomas Letexier & Ludovic Ragni, 2011. "Bridging the Learning Gap in the Market for Higher Education: E-learning and Public Subsidies," Economic Analysis, Institute of Economic Sciences, vol. 44(3-4), pages 1-11.
    2. Green, Colin P. & Navarro-Paniagua, María & Ximénez-de-Embún, Domingo P. & Mancebón, María-Jesús, 2014. "School choice and student wellbeing," Economics of Education Review, Elsevier, vol. 38(C), pages 139-150.

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