Book contents
- Frontmatter
- Contents
- List of contributors
- Preface
- 1 Introduction
- 2 International integration and the welfare state
- 3 The changing age structure and the public sector
- 4 Emigration from the Scandinavian welfare states
- 5 Productivity and costs in public production of services
- 6 Use of fees in the provision of public services in OECD countries
- 7 Privatisation of social insurance with reference to Sweden
- 8 Occupational welfare
- 9 Pathways to retirement and retirement incentives in Sweden
- 10 Social insurance and redistribution
- 11 Assessing the effect of introducing welfare accounts in Sweden
- 12 Taxation in a global economy
- 13 Taxation and education investment in the tertiary sector
- 14 Debt strategies for Sweden and Europe
- 15 Policy options for reforming the welfare state
- Index
- References
13 - Taxation and education investment in the tertiary sector
Published online by Cambridge University Press: 22 September 2009
Book contents
- Frontmatter
- Contents
- List of contributors
- Preface
- 1 Introduction
- 2 International integration and the welfare state
- 3 The changing age structure and the public sector
- 4 Emigration from the Scandinavian welfare states
- 5 Productivity and costs in public production of services
- 6 Use of fees in the provision of public services in OECD countries
- 7 Privatisation of social insurance with reference to Sweden
- 8 Occupational welfare
- 9 Pathways to retirement and retirement incentives in Sweden
- 10 Social insurance and redistribution
- 11 Assessing the effect of introducing welfare accounts in Sweden
- 12 Taxation in a global economy
- 13 Taxation and education investment in the tertiary sector
- 14 Debt strategies for Sweden and Europe
- 15 Policy options for reforming the welfare state
- Index
- References
Summary
Introduction
The public sector massively intervenes in the education sector in practically all OECD countries. Via free public provision of education, transfers to students, or high subsidies on education, the government strongly influences private education decisions. Education has elements of investment and consumption. For an analysis of public education policy the investment aspects are more relevant, and in what follows we will concentrate on these aspects.
Expenditures on education goods – from private and public sources – were 5.75 per cent of GDP on average in the OECD countries in 1998 (OECD, 2001a: 80). The variation in total expenditures across OECD countries was modest, ranging from 3.5 per cent of GDP in Turkey and 4.6 per cent in the Netherlands, to 7.0 per cent in Korea and 7.2 per cent in Denmark.
The public sector carries the lion's share of the costs of education in most OECD countries. In many countries primary and secondary education is financed almost exclusively by the public sector. An interesting fact is that the top group in terms of total expenditures includes countries with among the largest shares of public funding, like Sweden and Denmark, as well as countries with among the smallest public financing shares, like Korea and the USA (cf. OECD, 2001a: 93).
As has been illustrated in chapter 6, roughly a quarter of the education-goods expenditures are made on tertiary education; the OECD average is 1.59 per cent of GDP.
- Type
- Chapter
- Information
- Alternatives for Welfare PolicyCoping with Internationalisation and Demographic Change, pp. 305 - 327Publisher: Cambridge University PressPrint publication year: 2003
References
and , 1997, ‘A theory of trickle-down growth and development’, Review of Economic Studies, 64, 151–72CrossRefGoogle Scholar
and , 2001, ‘Investment in human capital, wage uncertainty, and public policy’, Journal of Public Economics, forthcomingGoogle Scholar
and , 2000a, ‘Human capital formation and globalization’, forthcoming in International Tax and Public Finance 10, 211–28CrossRefGoogle Scholar
and , 2000b, ‘Human capital investment and globalization in extortionary states’, forthcoming in Journal of Public EconomicsGoogle Scholar
and , 1986, ‘Moral hazard and optimal commodity taxation’, Journal of Public Economics, 29, 1–24CrossRefGoogle Scholar
and , 1991, ‘Public provision of private goods and the redistribution of income’, American Economic Review, 81, 979–84Google Scholar
, 2000, ‘Education policy and the returns to education’, Swedish Economic Policy Review, 7, 71–105Google Scholar
, and , 1996, ‘Investment in education and the time inconsistency of redistributive tax policy’, Economica, 63, 171–89CrossRefGoogle Scholar
and , 1991, ‘Transfers in kind: why they can be efficient and nonpaternalistic’, American Economic Review, 81, 1345–51Google Scholar
, 2000, ‘Welfare reform and the race to the bottom: theory and evidence’, Southern Economic Journal, 66, 505–25CrossRefGoogle Scholar
and , 1980, ‘Taxation, human capital, and uncertainty’, American Economic Review, 70, 705–15Google Scholar
and , 1994, ‘The effects of compulsory schooling on growth, income distribution and welfare’, Journal of Public Economics, 54, 339–59CrossRefGoogle Scholar
and , 1996, ‘Ends against the middle: determining public service provision when there are private alternatives’, Journal of Public Economics, 62, 297–325CrossRefGoogle Scholar
and , 1998, ‘Competition between private and public schools, vouchers, and peer-group effects’, American Economic Review, 88, 33–63Google Scholar
Erikson, R. and Jonsson, J. O., 1996, ‘Can education be equalized? The Swedish case in comparative perspective’, Westview Press, Oxford
and , 2001, ‘Family matters: impacts of family background on educational attainment’, Economica, 68, 137–56CrossRefGoogle Scholar
and , 1992, ‘Public versus private investment in human capital: endogenous growth and income inequality’, Journal of Political Economy, 100, 818–34CrossRefGoogle Scholar
and , 1995, ‘Competitive investment in higher education: the need for policy coordination’, Economics Letters, 47, 393–400CrossRefGoogle Scholar
Gradstein, M. and Justman, M., 1999a, ‘Education, social cohesion, and economic growth’, Discussion Paper No. 99–16, Monaster Center, Ben-Gurion University
Gradstein, M. and Justman, M., 1999b, ‘Human capital, social capital, and public schooling’, paper presented at the EEA 1999 meetings
Grüske, K.-D., 1994, ‘Verteilungseffekte der öffentlichen Hochschulfinanzierung in der Bundesrepublik Deutschland – Personale Inzidenz im Querschnitt und Längsschnitt’, in R. Lüdeke (ed.), Bildung, Bildungsfinanzierung und Einkommensverteilung Ⅱ, Schriften des Vereins für Socialpolitik, N.F. Bd. 221/Ⅱ, 71–147
, 1987, ‘Optimal wage and income taxation with wage uncertainty’, International Economic Review, 28, 373–88CrossRefGoogle Scholar
Högskoleverket (National Agency for Higher Education), 1997, ‘årsrapport för universitet & högskolor 1995/96’ (yearly report for universities), Stockholm
and , 1999, ‘Tax evasion, tax competition and the gains from nondiscrimination: the case of interest taxation in Europe’, Economic Journal, 109, 93–101CrossRefGoogle Scholar
and , 1997, ‘Implications of the mobility of skilled labor for local public funding of higher education’, Economics Letters, 55, 409–12CrossRefGoogle Scholar
and , 2000, ‘Local public funding of higher education when skilled labor is imperfectly mobile’, International Tax and Public Finance, 7, 247–58CrossRefGoogle Scholar
Kaplow, L., 1993, ‘Human capital and the income tax’, National Bureau of Economic Research, working paper 4299
and , 1987, ‘International migration under asymmetric information’, Economic Journal, 97, 718–26CrossRefGoogle Scholar
Keen, M., 2000, ‘Preferential regimes can make tax competition less harmful’, mimeo
and , 1997, ‘Fiscal competition and the pattern of public spending’, Journal of Public Economics, 66, 33–53CrossRefGoogle Scholar
, 1989, ‘Policy cooperation among benevolent governments may be undesirable’, Review of Economic Studies, 56, 289–96CrossRefGoogle Scholar
, 1995, ‘Social security and strategic inter-vivos transfers of social capital’, Journal of Population Economics, 8, 315–26CrossRefGoogle ScholarPubMed
, 2001, ‘Privacy, time consistent optimal labor income taxation and education policy’, Journal of Public Economics, 79, 503–19CrossRefGoogle Scholar
and , 1980, ‘Dynamic optimal taxation, rational expectations and optimal control’, Journal of Economic Dynamics and Control, 2, 79–91CrossRefGoogle Scholar
, 1988, ‘On the mechanics of economic development’, Journal of Monetary Economics, 22, 3–42CrossRefGoogle Scholar
and , 1996, ‘The economics of autocracy and majority rule’, Journal of Economic Literature, 34, 72–96Google Scholar
, and , 1992, ‘A contribution to the empirics of economic growth’, Quarterly Journal of Economics, 107, 407–37CrossRefGoogle Scholar
Meghir, C. and Palme, M., 2001, ‘The effect of a social experiment in education’, mimeo, UCL and Stockholm School of Economics
, , and , 1993, ‘Comprehensive income taxation, investments in human and physical capital, and productivity’, Journal of Public Economics, 50, 397–406CrossRefGoogle Scholar
and , 1997, ‘On the optimality of the Nordic system of dual income taxation’, Journal of Public Economics, 63, 311–29CrossRefGoogle Scholar
OECD, 1997, ‘Implementing the OECD jobs strategy: member countries’ Experience’, Paris: OECD
OECD, 1999, ‘Human capital investment: an international comparison’, Paris: OECD
OECD, 2000a, ‘OECD in figures, statistics on the member countries’, Paris: OECD
OECD, 2000b, ‘Education at a glance: OECD indicators’, Paris: OECD
OECD, 2001a, ‘Education at a glance: OECD indicators’, Paris: OECD
OECD, 2001b, ‘OECD in figures, statistics on the member countries’, Paris: OECD
, 1993, ‘Dictatorship, democracy, and development’, American Political Science Review, 87, 567–76CrossRefGoogle Scholar
Pedersen, P., Röed, M. and Schröder, L., 2003, ‘Emigration in the Nordic welfare states’, this volume
Pereira, P. and Silva Martins, P., 2000, ‘Does education reduce wage inequality? Quantile regressions evidence from fifteen European countries’, IZA DP No. 120, Bonn: IZA
and , 2000, ‘Why invest in your neighbor? Social contract on educational investment’, International Tax and Public Finance, 7, 547–62CrossRefGoogle Scholar
Röed, M., 1996, ‘Education and international migration: theoretical aspects’, in E. Wadensjö (ed.), The Nordic Labour Markets in the 1990s, part 2, Amsterdam: North-Holland
Sjögren, A., 2000, ‘Occupational choice and incentives: the role of family background’, working paper 539, The Research Institute of Industrial Economics, Stockholm
Temple, J., 2001, ‘Growth effects of education and social capital in the OECD countries’, mimeo, University of Bristol
Thum, C. and Übelmesser, S., 2000, ‘Mobility and the role of education as a commitment device’, mimeo
, 1980, ‘Redistributive taxation as social insurance’, Journal of Public Economics, 14, 49–68CrossRefGoogle Scholar
, 2000a, ‘Factor mobility and fiscal policy in the EU: policy issues and analytical approaches’, Economic Policy, 31, 337–78Google Scholar
, 2000b, ‘Labor-market integration, investment in risky human capital, and fiscal competition’, American Economic Review, 90, 73–95CrossRefGoogle Scholar