Globalization and Human Capital Formation

27 Pages Posted: 3 Apr 2001

See all articles by Fredrik Andersson

Fredrik Andersson

Lund University - Department of Economics

Kai A. Konrad

Max Planck Institute for Tax Law and Public Finance; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); IZA Institute of Labor Economics

Date Written: January 2001

Abstract

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.

Keywords: Globalization, commitment, time consistent income taxation, migration, education effort

JEL Classification: H21, H23

Suggested Citation

Andersson, Fredrik and Konrad, Kai A., Globalization and Human Capital Formation (January 2001). IZA Discussion Paper No. 245, Available at SSRN: https://ssrn.com/abstract=265622

Fredrik Andersson (Contact Author)

Lund University - Department of Economics ( email )

P.O. Box 7082
S-220 07 Lund
Sweden
+46 46 222 8676 (Phone)
+46 46 222 4118 (Fax)

Kai A. Konrad

Max Planck Institute for Tax Law and Public Finance ( email )

Marstallplatz 1
Munich, 80539
Germany

HOME PAGE: http://www.tax.mpg.de/en/pub/home.cfm

Centre for Economic Policy Research (CEPR)

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CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

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Germany

IZA Institute of Labor Economics

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Bonn, 53072
Germany

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