Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5056084 | Economic Modelling | 2007 | 25 Pages |
Abstract
In this paper we analyze intergenerational mobility on education. After a brief empirical analysis of the influence of family background on educational attainment, we present a dynamic model where the decisions concerning education may be financially constrained. Therefore, people who get higher educational levels are not necessarily the most talented. This “misallocation effect” causes a reduction in the efficiency of the economic system. We show that a proportional bequest taxation, whose yield is redistributed among all “youths”, increases efficiency.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Stefano Staffolani, Enzo Valentini,