How responsive is investment in schooling to changes in redistribution policies and in returns
By: Ran Abramitzky, Victor Lavy
Contributors: Lavy, Victor; National Bureau of Economic Research
Series: NBER working paper series -- working paper 17093; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 17093.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "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"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 8/30/2011.

Includes bibliographical references.

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