Fiscal policy, composition of intergenerational transfers, and income distribution
Alonso Carrera, Jaime (Universidad de Vigo)
Caballé, Jordi (Universitat Autònoma de Barcelona)
Raurich, Xavier (Universitat de Barcelona)

Imprint:	Barcelona: Barcelona GSE Graduate school of economics, 2009
Description:	32 pàg.
Abstract:	In this paper, we characterize the relationship between the initial distribution of human capital and physical inheritances among individuals and the long-run distribution of these two variables. In a model with indivisible investment in education, we analyze how the initial distribution of income determines the posterior intergenerational mobility in human capital and the evolution of intragenerational income inequality. This analysis enables us in turn to characterize the effects of fiscal policy on future income distribution and mobility when the composition of intergenerational transfers is endogenous. We find that a tax on inheritance results in both less intergenerational mobility and smaller investment in human capital. However, a tax on labor income may promote human capital accumulation if the education premium is sufficiently high.
Grants:	Ministerio de Ciencia e Innovación ECO2008-02752 Ministerio de Educación y Ciencia SEJ2006-03879 Ministerio de Educación y Ciencia SEJ2006-05441 Generalitat de Catalunya 2005 / SGR-00447 Generalitat de Catalunya 2005 / SGR-00984
Rights:	Tots els drets reservats.
Language:	Anglès
Series:	GSE working paper 387
Document:	Working paper ; recerca ; Article ; Versió publicada
Subject:	Altruism ; Intergenerational Transfers ; Human Capital ; Income distribution
Published in:	Barcelona GSE graduate school of economics Working Papers, 2009

Adreça alternativa: https://bse.eu/research/working-papers/fiscal-policy-composition-intergenerational-transfers-and-income

32 p, 321.7 KB

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