International Tax and Public Finance

, Volume 10, Issue 3, pp 211–228

Globalization and Risky Human-Capital Investment

  • Fredrik Andersson
  • Kai A. Konrad
Article

DOI: 10.1023/A:1023862229689

Cite this article as:
Andersson, F. & Konrad, K.A. International Tax and Public Finance (2003) 10: 211. doi:10.1023/A:1023862229689

Abstract

Globalization is supposed to increase the mobility of highly skilled labor and to reduce governments' scope for redistribution. We show that this increases the private incentives for education and may decrease, but may also increase, the government's incentives to provide education subsidies in a framework in which education investment is risky. Globalization shifts the cost of these subsidies to the less skilled. For the welfare implications of globalization the availability of private insurance is crucial. Welfare unambiguously increases if such markets work.

income taxation risk taking migration education effort 

Copyright information

© Kluwer Academic Publishers 2003

Authors and Affiliations

  • Fredrik Andersson
    • 1
  • Kai A. Konrad
    • 2
    • 3
  1. 1.Department of EconomicsLund UniversityLundSweden
  2. 2.Wissenschaftszentrum Berlin für Sozialforschung (WZB)BerlinGermany
  3. 3.Department of EconomicsFree University of BerlinGermany

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