Education, mobility and redistribution

Pestieau, Pierre;Racionero, Maria
(2023) , 19 pages

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  • Pestieau, PierreUCL, ULg
    Author
  • Racionero, Maria
    Author
Abstract
Recent evidence suggests that social mobility has declined in many devel- oped countries despite some of them pursuing proactive redistribution policies. In this paper we characterize the optimal mix of income tax and education poli- cies that a government should adopt to maximize a long-term social objective that includes considerations for income redistribution and upward mobility. We show that switching from an elitist to a meritocratic education system, or from a short-term to a long-term vision of social welfare, fosters upward mobility but it can sometimes lead to increased inequality.
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Pestieau, P., & Racionero, M. (2023). Education, mobility and redistribution (LIDAM Discussion Paper CORE 2023/24). https://hdl.handle.net/2078.5/101540