Redistribution and subsidies for higher education

Carmen Bevia, Inigo Iturbe-Ormaetxe

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16 Citations (Scopus)

Abstract

The financing of higher education through public spending imposes a transfer of resources from taxpayers to university students and their parents. We provide an explanation for this phenomenon. Those who attend institutions of higher education will earn more income in the future and will pay more taxes. People whose children do not receive higher education, however, should agree to help pay the cost of such education, providing that taxes are sufficiently high to ensure an adequate redistribution in favor of their own children at some time in the future.
Original languageEnglish
Pages (from-to)321-340
JournalScandinavian Journal of Economics
Volume104
DOIs
Publication statusPublished - 1 Jan 2002

Keywords

  • Higher education
  • Redistribution
  • Taxation

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    Bevia, C., & Iturbe-Ormaetxe, I. (2002). Redistribution and subsidies for higher education. Scandinavian Journal of Economics, 104, 321-340. https://doi.org/10.1111/1467-9442.00289