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Tax effects on education

Alstadsæter, Annette
Working paper
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URI
http://hdl.handle.net/11250/163276
Date
2005-01
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  • Discussion papers (SAM) [604]
Abstract
Taxes affect the individual’s educational choice through many channels, and they

have both direct and indirect effects on human capital accumulation. The structure

of the tax system creates different incentive effects that distorts the individual’s educational

choice. Some of these tax effects discourage higher education, while others

encourage it. I give an overview over the existing literature on taxes and education

and also provide the intuition for many of these partial effects in a simple model. The total effect of taxes on education is ambiguous.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
2005:1

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