Bovenberg, A Lans; Jacobs, Bas - C.E.P.R. Discussion Papers - 2001
optimal level of education subsidies along with the optimal progressive schedule of the labour income tax and optimal capital … income taxes. Subsidies on education ensure efficiency in human capital accumulation, while taxes on skilled labour help to … redistribute income towards the less able. We thus provide a rationale for the widely observed presence of education subsidies. The …