The effect of endogenous human capital accumulation on optimal taxation

@article{Peterman2012TheEO,
  title={The effect of endogenous human capital accumulation on optimal taxation},
  author={William B. Peterman},
  journal={Review of Economic Dynamics},
  year={2012},
  volume={21},
  pages={46-71}
}
This paper considers the impact of endogenous human capital accumulation on optimal tax policy in a life cycle model. Including endogenous human capital accumulation, either through learning-by-doing or learning-or-doing, is analytically shown to create a motive for the government to use age-dependent labor income taxes. If the government cannot condition taxes on age, then it is optimal to use a tax on capital in order to mimic such taxes. Quantitatively, introducing learning-by-doing or… 

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