Optimal Wage and Income Taxation with Wage Uncertainty

Hamilton, Jonathan

doi:10.2307/2526731

Cited by 58 publications

(68 citation statements)

References 3 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In a seminal paper, Eaton and Rosen (1980) showed that introducing a redistributive linear income tax improves welfare when the return to education is stochastic. Hamilton (1987), extending the analysis, showed that some policy instrument to encourage education, e.g. a capital income tax, would be a desirable complement to an income tax.…”

Section: Introductionmentioning

confidence: 84%

Optimal policy and the risk properties of human capital reconsidered

Anderberg

2009

Journal of Public Economics

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

show abstract

Section: Introductionmentioning

confidence: 84%

Optimal policy and the risk properties of human capital reconsidered

Anderberg

2009

Journal of Public Economics

View full text Add to dashboard Cite

show abstract

“…The empirical tests of Cochrane (1991), Hayashi et al (1996), andCarroll (2000) all document strong departures from complete risk sharing, both between and even within families. The research of Levhari and Weiss (1974), Eaton and Rosen (1980), and Hamilton (1987) emphasizes uncertainty in the return to human capital, and the difficulties in diversifying such risk. The long-run implications of uninsurable risk are explored in recent work by Castan˜eda et al (2003); Dı´az-Gime´nez et al (1997), andDe Nardi (2004).…”

Section: Introductionmentioning

confidence: 99%

Risky higher education and subsidies

Akyol

Athreya

2005

Journal of Economic Dynamics and Control

View full text Add to dashboard Cite

Tertiary education in the U.S. requires large investments that are risky, lumpy, and welltimed. Tertiary education is also heavily subsidized. Our model suggests that despite adverse selection arising from encouraging poorly prepared students to enroll, observed collegiate subsidies improve outcomes substantially relative to the fully decentralized case. This result occurs because increases in subsidy rates for college education generate reductions in college failure risk without altering mean returns. We find that this mechanism is robust, and that tertiary subsidy rates well in excess of those observed in the U.S. can be justified by failure risk alone. r 2004 Elsevier B.V. All rights reserved. JEL classification: E60; I22

show abstract

“…Some theoretical papers offer important insights (Levhari -Weiss 1974;EatonRosen 1980;Hamilton 1987;Anderberg -Andersson 2003;da Costa -Maestri 2007;Anderberg 2009;Jacobs et al 2009) and there is some very useful empirical literature (Carniero et al 2003;Cunera et al 2004;Chen 2008). There is a debate over whether we should consider education a risky investment in human capital and/or as an insurance against labour market risks.…”

Section: Acta Oeconomica 65 (2015)mentioning

confidence: 99%

Macro- and microeconomic risks of student loans in an international context

Vona

2015

Acta Oeconomica

View full text Add to dashboard Cite

The risk of individual investment in higher education is not a well-researched topic compared to the rate of return to education. In many countries tuition fees are low, but there is a possibility to borrow for investment in education. This can lead to irresponsible investment behaviour. The paper will show that the student loan market is too small to cause a macroeconomic crisis, but that it is a market with many stakeholders and irresponsible behaviour should not be encouraged. With the examination of a Hungarian sample, it can be concluded that in the context of higher education, signs of rational investment behaviour can be found. The risks of post-secondary studies are not yet fully understood and measured, and for this reason further research is suggested.

show abstract

Optimal Wage and Income Taxation with Wage Uncertainty

Cited by 58 publications

References 3 publications

Optimal policy and the risk properties of human capital reconsidered

Optimal policy and the risk properties of human capital reconsidered

Risky higher education and subsidies

Macro- and microeconomic risks of student loans in an international context

Contact Info

Product

Resources

About