Globalization and risky human capital investment

Andersson, F.; Konrad, K. A.

doi:10.1023/A:1023862229689

Item

ITEM ACTIONSEXPORT

Add to Basket

Local TagsRelease HistoryDetailsSummary

Released

Journal Article

Globalization and risky human capital investment

MPS-Authors

There are no MPG-Authors in the publication available

External Resource

No external resources are shared

Fulltext (restricted access)

There are currently no full texts shared for your IP range.

Fulltext (public)

There are no public fulltexts stored in PuRe

Supplementary Material (public)

There is no public supplementary material available

Citation

Andersson, F., & Konrad, K. A. (2003). Globalization and risky human capital investment. International tax and public finance, 10(3), 211-228. doi:10.1023/A:1023862229689.

Cite as: https://hdl.handle.net/11858/00-001M-0000-0023-DB8C-D

Abstract

Globalization is supposed to increase the mobility of highly skilled labor and to reduce governments' scope for redistribution. We show that this increases the private incentives for education and may decrease, but may also increase, the government's incentives to provide education subsidies in a framework in which education investment is risky. Globalization shifts the cost of these subsidies to the less skilled. For the welfare implications of globalization the availability of private insurance is crucial. Welfare unambiguously increases if such markets work.