Investments in human capital, wage uncertainty, and public policy
(2003) In Journal of Public Economics 87(7-8). p.1521-1537- Abstract
- The importance of risk characteristics of human capital for the design of tax and education policy is explored. Wages are uncertain and education, while increasing the expected wage, may increase or decrease wage variance. The government has strong reasons to encourage human capital formation in the latter case, partly due to the insurance effect of human capital, and partly due to the way the individuals-under a plausible restriction on 'prudence'-respond to changes in risk. The analysis is illustrated using two models of education: one where education helps the individuals make better occupational choices, and a standard risk-augmented Becker-type model.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/900042
- author
- Anderberg, Dan and Andersson, Fredrik LU
- organization
- publishing date
- 2003
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- prudence, wage uncertainty, social insurance, education
- in
- Journal of Public Economics
- volume
- 87
- issue
- 7-8
- pages
- 1521 - 1537
- publisher
- Elsevier
- external identifiers
-
- wos:000184745700008
- scopus:0041841619
- ISSN
- 0047-2727
- DOI
- 10.1016/S0047-2727(01)00198-0
- language
- English
- LU publication?
- yes
- id
- 1a00c115-e642-4f58-bcdf-8b7cf90ab6a9 (old id 900042)
- date added to LUP
- 2016-04-01 16:44:46
- date last changed
- 2022-01-28 21:50:28
@article{1a00c115-e642-4f58-bcdf-8b7cf90ab6a9,
abstract = {{The importance of risk characteristics of human capital for the design of tax and education policy is explored. Wages are uncertain and education, while increasing the expected wage, may increase or decrease wage variance. The government has strong reasons to encourage human capital formation in the latter case, partly due to the insurance effect of human capital, and partly due to the way the individuals-under a plausible restriction on 'prudence'-respond to changes in risk. The analysis is illustrated using two models of education: one where education helps the individuals make better occupational choices, and a standard risk-augmented Becker-type model.}},
author = {{Anderberg, Dan and Andersson, Fredrik}},
issn = {{0047-2727}},
keywords = {{prudence; wage uncertainty; social insurance; education}},
language = {{eng}},
number = {{7-8}},
pages = {{1521--1537}},
publisher = {{Elsevier}},
series = {{Journal of Public Economics}},
title = {{Investments in human capital, wage uncertainty, and public policy}},
url = {{http://dx.doi.org/10.1016/S0047-2727(01)00198-0}},
doi = {{10.1016/S0047-2727(01)00198-0}},
volume = {{87}},
year = {{2003}},
}