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Biblioteca

Publicado en: Tesis Magíster

Higher Education Policy, Graduate Taxes and Wealth Distribution

Sebastián Guarda L.

Tesis, Magíster en Economía, IE-PUC, 2017

Abstract: This thesis intends to shed light on the possible effects of higher education policy reforms on the distribution of wealth, speci cally the implementation of free higher education, replacing tuition fees. A novel alternative for nancing the reform is examined: a tax on the labor income of higher education graduates. The analysis
is based on a quantitative OLG life cycle model, with heterogeneous agents, intergenerational links, incomplete nancial markets, endogenous education decision, and general equilibrium in the determination of wages. The results indicate a slight decrease in wealth inequality, explained by an increase in enrollment, graduation and a smaller earnings premium for higher education.

 

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