Premium
Labor Income Taxation, Human Capital, and Growth: The Role of Childcare *
Author(s) -
Casarico Alessandra,
Sommacal Alessandro
Publication year - 2012
Publication title -
the scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/j.1467-9442.2012.01718.x
Subject(s) - economics , human capital , labour economics , growth model , overlapping generations model , production (economics) , capital income , international taxation , macroeconomics , public economics , economic growth , tax reform
In this paper, we examine the effects of labor income taxation on growth in an overlapping generations model in which schooling and childcare play a role in the production of human capital. We compare such effects with those obtained in a model in which only schooling matters for skill formation. We show that the omission of childcare from the technology of skill formation can bias the results related to the impact of labor income taxation on growth.