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How Responsive is Investment in Schooling to Changes in Redistribution Policies and in Returns / Ran Abramitzky, Victor Lavy.
- Format:
- Book
- Author/Creator:
- Abramitzky, Ran.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w17093.
- NBER working paper series no. w17093
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2011.
- Summary:
- 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 education. This effect is stronger for males and is mainly driven by students whose parents have lower levels of education. Our findings support the prediction that education is highly responsive to changes in the redistribution policy, especially for students from weaker backgrounds.
- Notes:
- Print version record
- May 2011.
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