Resource title

Educational and wage risk: social insurance vs. quality of education

Resource image

image for OpenScout resource :: Educational and wage risk: social insurance vs. quality of education

Resource description

In this model of education, where individuals are exposed both to educational risk and to wage risk within the skilled sector, successful graduation depends both on individual effort to study and on public resources. We show that insuring the present risks is a dichotomic task: Wage risk is diversified ex post among the skilled by graduate taxation and skill-specific tuition fees. Educational risk of failure and inequality between skilled and unskilled workers are mitigated ex ante by enhancing the quality of education. The necessary expenditures are optimally financed by regressive tuition fees and the net revenue from the graduate tax.

Resource author

Dirk Schindler, Benjamin Weigert

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26558

Resource license

Adapt according to the presented license agreement and reference the original author.