Labor Income Taxation, Human Capital, and Growth: The Role of Childcare

26 Pages Posted: 27 Nov 2012

See all articles by Alessandra Casarico

Alessandra Casarico

Bocconi University - Department of Policy Analysis and Public Management

Alessandro Sommacal

Universite Catholique de Louvain - Institut de Recherches Economiques et Sociales (IRES)

Date Written: December 2012

Abstract

In this paper, we examine the effects of labor income taxation on growth in an overlapping generations model in which schooling and childcare play a role in the production of human capital. We compare such effects with those obtained in a model in which only schooling matters for skill formation. We show that the omission of childcare from the technology of skill formation can bias the results related to the impact of labor income taxation on growth.

Keywords: Child development, early childhood environment, labor supply, skill formation technology, time allocation

JEL Classification: D9, H31

Suggested Citation

Casarico, Alessandra and Sommacal, Alessandro, Labor Income Taxation, Human Capital, and Growth: The Role of Childcare (December 2012). The Scandinavian Journal of Economics, Vol. 114, Issue 4, pp. 1182-1207, 2012, Available at SSRN: https://ssrn.com/abstract=2181262 or http://dx.doi.org/10.1111/j.1467-9442.2012.01718.x

Alessandra Casarico (Contact Author)

Bocconi University - Department of Policy Analysis and Public Management ( email )

Via Roentgen 1
Milan, 20136
Italy

Alessandro Sommacal

Universite Catholique de Louvain - Institut de Recherches Economiques et Sociales (IRES) ( email )

3, Place Montesquieu
1348 Louvain-la-Neuve
Belgium

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