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Education Vouchers and Labour Supply

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  • John Creedy

    (The University of Melbourne)

Abstract

This paper compares labour supply behaviour under a uniform education voucher system with one involving a means-tested scheme in which the voucher is subject to a taper or withdrawal rate as parental gross income increases. Particular attention is given to the implications of nonlinear budget constraints. Parents maximise a utility function which includes their consumption, leisure and the human capital of children. The human capital production function has inputs consisting of parental human capital and expenditure on education.

Suggested Citation

  • John Creedy, 2010. "Education Vouchers and Labour Supply," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 13(2), pages 155-173.
    • Handle: RePEc:ozl:journl:v:13:y:2010:i:2:p:155-173
    as

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    References listed on IDEAS

    as
    1. Buly Cardak & Phillip Hone, 2003. "Subsidies for Private Community Services: The Case of School Education," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 10(2), pages 129-144.
    2. Thomas J. Nechyba, 1999. "School Finance Induced Migration and Stratification Patterns: The Impact of Private School Vouchers," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 1(1), pages 5-50, January.
    3. Caucutt, Elizabeth M., 2004. "Evolution Of The Income Distribution And Education Vouchers," Macroeconomic Dynamics, Cambridge University Press, vol. 8(2), pages 226-249, April.
    4. Bearse, Peter & Glomm, Gerhard & Ravikumar, B., 2000. "On the political economy of means-tested education vouchers," European Economic Review, Elsevier, vol. 44(4-6), pages 904-915, May.
    5. Buly A Cardak & Phillip Hone, 2003. "Government Subsidies for Private Community Services: The Case of School Education," Working Papers 2003.01 EDIRC Provider-In, School of Economics, La Trobe University.
    6. West, Edwin G, 1997. "Education Vouchers in Principle and Practice: A Survey," The World Bank Research Observer, World Bank, vol. 12(1), pages 83-103, February.
    7. Buly A. Cardak, 1999. "Heterogeneous Preferences, Education Expenditures and Income Distribution," The Economic Record, The Economic Society of Australia, vol. 75(1), pages 63-76, March.
    8. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-834, August.
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    More about this item

    Keywords

    Taxation and Subsidies: Efficiency; Optimal Taxation; National Government Expenditures and Education; Publicly Provided Goods: General;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H4 - Public Economics - - Publicly Provided Goods

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