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- W3125719232 abstract "In this paper, we characterize the relationship between the initial distribution of human capital and physical inheritances among individuals and the long-run distribution of these two variables. In a model with indivisible investment in education, we analyze how the initial distribution of income determines the posterior inter-generational mobility in human capital and the evolution of intra-generational income inequality. This analysis enables us in turn to characterize the effects of fiscal policy on future income distribution and mobility when the composition of inter-generational transfers is endogenous. We find that a tax on inheritance results in both less inter-generational mobility and smaller investment in human capital. However, a tax on labor income may promote human capital accumulation if the education premium is sufficiently high." @default.
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- W3125719232 date "2009-06-01" @default.
- W3125719232 modified "2023-09-27" @default.
- W3125719232 title "Fiscal policy, composition of intergenerational transfers, and income distribution" @default.
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