TY  - RPRT
        AU  - Andersson, Fredrik W.
AU  - Konrad, Kai A.
        TI  - Human Capital Investment and Globalization in Extortionary States
        PY  - 2001/Jan/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 239
        UR  - https://www.iza.org/publications/dp239
        AB  - This paper considers education investment and public education subsidies in closed and open economies with an extortionary government. The extortionary government in a closed economy has incentives to subsidize education in order to overcome a hold-up problem of time consistent taxation, similar to benevolent governments. The two types of government differ in their education policies if highly productive labor is fully mobile. Extortionary governments’ incentives for education subsidies vanish and they even have an incentive to prevent individuals from mobility increasing education investment. Tax competition therefore reduces hold-up problems of time consistent extortionary taxation, but also introduces incentives that reduce workers’ utility.
        KW  - time consistent income taxation
KW  - commitment
KW  - migration
KW  - Globalization
KW  - education
        ER  -