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How responsive is investment in schooling to changes in redistributive policies and in returns?
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Abramitzky, Ran and Lavy, Victor (2013) How responsive is investment in schooling to changes in redistributive policies and in returns? Working Paper. Coventry, UK: Department of Economics, University of Warwick. CAGE Online Working Paper Series, Volume 2013 (Number 150).
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Text (Working paper)
WRAP_150-2013_lavy.pdf - Published Version Download (1640Kb) | Preview |
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
Abstract
This paper uses an unusual pay reform to test the responsiveness of investment in schooling to
changes in redistribution schemes that increase the rate of return to education. We exploit an
episode where different Israeli kibbutzim shifted from equal sharing to productivity-based wages
in different years and find that students in kibbutzim that reformed earlier invested more in high
school education. This effect is stronger for males and is largely driven by students whose parents
have lower levels of education. We also show that, in the long run, students in kibbutzim that
reformed earlier were more likely to complete post-high school academic colleges. Our findings
support the prediction that education is highly responsive to changes in the redistribution policy,
especially for students from weaker backgrounds.
| Item Type: | Working or Discussion Paper (Working Paper) | ||||
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| Alternative Title: | |||||
| Subjects: | H Social Sciences > HB Economic Theory L Education > LB Theory and practice of education |
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| Divisions: | Faculty of Social Sciences > Economics | ||||
| Library of Congress Subject Headings (LCSH): | Education -- Israel, Education -- Economic aspects -- Research | ||||
| Series Name: | CAGE Online Working Paper Series | ||||
| Publisher: | Department of Economics, University of Warwick | ||||
| Place of Publication: | Coventry, UK | ||||
| Official Date: | September 2013 | ||||
| Dates: |
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| Volume: | Volume 2013 | ||||
| Number: | Number 150 | ||||
| Number of Pages: | 53 | ||||
| Institution: | University of Warwick | ||||
| Status: | Not Peer Reviewed | ||||
| Publication Status: | Published | ||||
| Funder: | University of Warwick, European Research Council (ERC) |
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