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Globalization and risky human-capital investment

Andersson, Fredrik LU and Konrad, KA (2003) In International Tax and Public Finance 10(3). p.211-228
Abstract
Globalization is supposed to increase the mobility of highly skilled labor and to reduce governments' scope for redistribution. We show that this increases the private incentives for education and may decrease, but may also increase, the government's incentives to provide education subsidies in a framework in which education investment is risky. Globalization shifts the cost of these subsidies to the less skilled. For the welfare implications of globalization the availability of private insurance is crucial. Welfare unambiguously increases if such markets work.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
education effort, migration, risk taking, income taxation
in
International Tax and Public Finance
volume
10
issue
3
pages
211 - 228
publisher
Kluwer
external identifiers
  • wos:000183042700001
  • scopus:4043116447
ISSN
1573-6970
DOI
10.1023/A:1023862229689
language
English
LU publication?
yes
id
7739c80f-5a25-4e03-b1a2-debde4f49e5a (old id 900390)
date added to LUP
2008-01-10 09:26:32
date last changed
2017-01-01 07:29:00
@article{7739c80f-5a25-4e03-b1a2-debde4f49e5a,
  abstract     = {Globalization is supposed to increase the mobility of highly skilled labor and to reduce governments' scope for redistribution. We show that this increases the private incentives for education and may decrease, but may also increase, the government's incentives to provide education subsidies in a framework in which education investment is risky. Globalization shifts the cost of these subsidies to the less skilled. For the welfare implications of globalization the availability of private insurance is crucial. Welfare unambiguously increases if such markets work.},
  author       = {Andersson, Fredrik and Konrad, KA},
  issn         = {1573-6970},
  keyword      = {education effort,migration,risk taking,income taxation},
  language     = {eng},
  number       = {3},
  pages        = {211--228},
  publisher    = {Kluwer},
  series       = {International Tax and Public Finance},
  title        = {Globalization and risky human-capital investment},
  url          = {http://dx.doi.org/10.1023/A:1023862229689},
  volume       = {10},
  year         = {2003},
}