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Unequal wages for equal utilities

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]

CollectionsANU Research Publications
Date published: 2011
Type: Journal article
Source: International Tax and Public Finance
DOI: 10.1007/s10797-011-9163-2


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