Second-best income taxation and education policy with endogenous human capital and borrowing constraints

2015 ◽  
Vol 23 (2) ◽  
pp. 234-268 ◽  
Author(s):  
Bas Jacobs ◽  
Hongyan Yang
Keyword(s):  
Human Capital ◽  
Education Policy ◽  
Borrowing Constraints ◽  
Income Taxation ◽  
Second Best

scholarly journals Neoliberal epistemology: From the impossibility of knowing to human capital

2013 ◽  
Vol 24 (4) ◽  
pp. 63-83 ◽  
Author(s):  
Primoz Krasovec
Keyword(s):  
Human Capital ◽  
Problem Solving ◽  
Education Policy ◽  
Knowledge Society ◽  
Education Reforms ◽  
Learning To Learn ◽  
Economic Theories ◽  
Life Long Learning ◽  
History Of ◽  
Uncritical Acceptance

Today?s discussions on education policy mostly consist of uncritical shuffling of allegedly neutral and merely technical or practical notions such as life-long learning, learning to learn or problem-solving and are based on similarly uncritical acceptance of socio-economic theories of the knowledge society, which is supposed to present an objective framework of education reforms. The aim of this article is to sketch the history of mentioned notions and to present a critique of theories of the knowledge society through an analysis of its tacit political content. To this aim, we took upon early neoliberal epistemology (Hayek and Polanyi) as well as its transition towards theories of human capital (Drucker and Machlup).

scholarly journals Measuring Investment in Education

1996 ◽  
Vol 10 (4) ◽  
pp. 9-30 ◽  
Author(s):  
Eric A Hanushek
Keyword(s):  
Human Capital ◽  
Student Achievement ◽  
Public Schools ◽  
Education Policy ◽  
Student Performance ◽  
School Quality ◽  
Policy Instruments ◽  
Economic Research ◽  
Performance Incentives ◽  
Education Resources

Historic debates about the measurement of capital are even more complicated in the case of education and human capital. As extensive research demonstrates, education resources are not consistently related to student performance in existing elementary and secondary schools. This inefficiency in public schools implies that spending and resource measures do not accurately capture variations in school quality. This finding then has clear implications for both education policy and economic research. Because school inputs are poor policy instruments, an alternative policy focus that appears much more productive is performance incentives related to student achievement.

scholarly journals Human Capital Risk, Contract Enforcement, and the Macroeconomy

2015 ◽  
Vol 105 (11) ◽  
pp. 3223-3272 ◽  
Author(s):  
Tom Krebs ◽  
Moritz Kuhn ◽  
Mark L. J. Wright
Keyword(s):  
Human Capital ◽  
Life Insurance ◽  
Capital Investment ◽  
Empirical Finding ◽  
Borrowing Constraints ◽  
Contract Enforcement ◽  
Consumer Bankruptcy ◽  
Age Dependent ◽  
Households With Children ◽  
Adult Member

We use microdata to show that young households with children are underinsured against the risk that an adult member of the household dies. This empirical finding can be explained by a macroeconomic model with human capital risk, age-dependent returns to human capital investment, and endogenous borrowing constraints due to limited contract enforcement. When calibrated, the model quantitatively accounts for the observed life-cycle variation in life insurance holdings, financial wealth, earnings, and consumption inequality. The model also predicts that reforms making consumer bankruptcy more costly will substantially increase the volume of both credit and insurance. (JEL D14, D91, G22, J13, J24)

Path from human capital to economic growth: A free highway or a complicated labyrinth?

2017 ◽  
pp. 5-23 ◽  
Author(s):  
I. Lyubimov
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Education Policy ◽  
Financial Markets ◽  
Capital Accumulation ◽  
Human Capital Accumulation ◽  
Limited Effect ◽  
Rights Protection ◽  
Property Rights Protection

In this paper, we consider a number of causes which can potentially explain why human capital accumulation policies might have limited effect on economic growth. Mixed empirical results can be found in the literature, both supporting and questioning the key role of human capital as an important cause of economic growth. We focus on the latter and start from pointing at inaccurate indicators of human capital accumulation, such as the average years of schooling, which might not reflect with acceptable level of accuracy the level of human capital accumulated in a particular economy. We then consider the role of other causes of economic growth, such as property rights protection or financial markets development, which might affect the demand for human capital, thus potentially limiting the effect of a policy affecting the supply of human capital. We then discuss the efficiency of human capital distribution among various activities in a particular economy and argue that the way the economy uses its human capital stock might matter for its growth rates. Finally we point at potential flaws in education policy, which might result in slow accumulation of human capital.

Inequality and Markets: Some Implications of Occupational Diversity

2010 ◽  
Vol 2 (4) ◽  
pp. 38-76 ◽  
Author(s):  
Dilip Mookherjee ◽  
Debraj Ray
Keyword(s):  
Human Capital ◽  
Income Distribution ◽  
Borrowing Constraints ◽  
Return To Education ◽  
Educational Investment ◽  
Market Conditions ◽  
Training Costs ◽  
Average Return ◽  
Long Run ◽  
Persistent Inequality

This paper studies income distribution in an economy with borrowing constraints. Parents leave both financial and educational bequests; these determine the occupational choices of children. Occupational returns are determined by market conditions. If the span of occupational investments is large, long-run wealth distributions display persistent inequality. With a “rich” set of occupations, so that training costs form an interval, the distribution is unique and the average return to education must rise with educational investment. This finding contrasts with the usual presumption of diminishing returns to human capital. It is the central testable proposition of this paper. (JEL D14, D31, J24)

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