determine the investment effort and the productivity of education, we abandon the stylised median voter in favour of more …

development regimes and it illustrates wider role of education in tackling possible development traps. …

Should a redistributive government optimally subsidize education to provoke a reduction in the skill premium through … income taxes and education subsidies in two-type models with endogenous human capital formation, endogenous labor supply, and … endogenous wage rates. Under optimal linear policies, education should not be subsidized so as to reduce the skill premium …

. If education is complementary to labor effort, education should be subsidized to offset tax distortions on labor supply …. However, if most of the education is enjoyed by high ability households, education should be taxed in order to redistribute … resources to the poor. The paper identifies the exact conditions under which these two effects cancel and education should be …

In this paper education simultaneously affects growth and income inequality. More education does not necessarily … decrease inequality when the latter is assessed by the Lorenz dominance criterion. Increases in education first increase and … information on the nonlinear relationship between growth and education. …

. Real options may help to explain a larger human capital premium for higher education, smaller responsiveness of higher … education investments to financial incentives, and larger sensitivity of higher education to low-return outcomes and human … standard human capital model. A flat income tax remains neutral if education expenditures are fully deductible. …