Discussion Papers no. 419
Tax effects on unemployment and the choice of educational type
This paper examines the effect of taxes on the individuals' choices of educational direction, and thus on the economy's skill composition. A proportional labour income tax induces too many workers with high innate ability to choose an educational type with high consumption value and low effort costs. This increases the skill mismatch and aggregate unemployment in the economy. The government can correct for this distortion by use of differentiated tuition fees or tax rates.
Om publikasjonen
- Tittel
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Tax effects on unemployment and the choice of educational type
- Ansvarlige
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Annette Alstadsæter, Birthe Larsen, Ann-Sofie Kolm
- Serie og -nummer
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Discussion Papers no. 419
- Utgiver
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Statistics Norway
- Emne
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Discussion Papers
- Antall sider
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28
- Målform
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Engelsk
- Om Discussion Papers
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Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.
Kontakt
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