Labor Income Taxation,Human Capital,and Growth: The Role of Childcare* |
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Authors: | Alessandra Casarico Alessandro Sommacal |
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Affiliation: | 1. Bocconi University, 20136 Milan, Italy alessandra.casarico@unibocconi.it;2. University of Verona, 37129 Verona, Italy alessandro.sommacal@univr.it |
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Abstract: | In this paper, we examine the effects of labor income taxation on growth in an overlapping generations model in which schooling and childcare play a role in the production of human capital. We compare such effects with those obtained in a model in which only schooling matters for skill formation. We show that the omission of childcare from the technology of skill formation can bias the results related to the impact of labor income taxation on growth. |
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Keywords: | Child development early childhood environment labor supply skill formation technology time allocation D9 H31 |
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