Redistribution and Subsidies for Higher Education

20 Pages Posted: 3 Jan 2003

See all articles by Carmen Bevia

Carmen Bevia

Universidad de Alicante

Inigo Iturbe-Ormaetxe

Universidad de Alicante - Department of Economic Analysis

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Abstract

The financing of higher education through public spending imposes a transfer of resources from taxpayers to university students and their parents. We provide an explanation for this phenomenon. Those who attend institutions of higher education will earn more income in the future and will pay more taxes. People whose children do not receive higher education, however, should agree to help pay the cost of such education, providing that taxes are sufficiently high to ensure an adequate redistribution in favor of their own children at some time in the future.

JEL Classification: D71, H21, H52

Suggested Citation

Bevia, Carmen and Iturbe-Ormaetxe, Inigo, Redistribution and Subsidies for Higher Education. Scandinavian Journal of Economics, Vol. 104, pp. 321-340, 2002. Available at SSRN: https://ssrn.com/abstract=317385

Carmen Bevia (Contact Author)

Universidad de Alicante ( email )

Campus de San Vicente, sn
Alicante, 03690
Spain

Inigo Iturbe-Ormaetxe

Universidad de Alicante - Department of Economic Analysis ( email )

03080 Alicante
Spain
965903400 ext. 3227 (Phone)
965903898 (Fax)

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