Cremer, Helmuth; Pestieau, Pierre; Racionero, Maria
When educational policy is supplemented by a redistributive income tax, and when individuals differ in their ability to benefit from education, the optimal policy is typically rather regressive. Resources are concentrated on the most able individuals in order to get a "cake" as big as possible to share among individuals through income taxation. In this paper, we put forward another reason to push for regressive education. It is not linked to heterogeneity in innate ability but to the property...[Show more]
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