Globalization and Human Capital Formation
Lund University - Department of Economics
Kai A. Konrad
Max Planck Institute for Tax Law and Public Finance; Social Science Research Center Berlin (WZB); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA)
IZA Discussion Paper No. 245
This paper compares education investment in closed and open economies without government and with a benevolent government. The fact that the time consistency problem in taxation can make labor mobility beneficial even if governments are fully benevolent ? which is known from other contexts ? is shown to be true in the economies considered. It is further shown that labor mobility is unambiguously beneficial if private insurance for human capital investment is available.
Number of Pages in PDF File: 27
Keywords: Globalization, commitment, time consistent income taxation, migration, education effort
JEL Classification: H21, H23working papers series
Date posted: April 3, 2001
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