NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

How Responsive is Investment in Schooling to Changes in Redistribution Policies and in Returns

Ran Abramitzky, Victor Lavy

NBER Working Paper No. 17093
Issued in May 2011
NBER Program(s):   CH   DAE   ED   LS   PE

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.

download in pdf format
   (279 K)

email paper

A non-technical summary of this paper is available in the November 2011 NBER digest.  You can sign up to receive the NBER Digest by email.

This paper is available as PDF (279 K) or via email.

This paper was revised on December 5, 2011

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w17093

“How Responsive is Investment in Schooling to Changes in Redistribution Policies and in Returns?” with Victor Lavy, forthcoming Econometrica [current draft: March 2014]

Users who downloaded this paper also downloaded these:
Aguiar, Hurst, and Karabarbounis w17259 Time Use During Recessions
Anderson and Auffhammer w17170 Pounds that Kill: The External Costs of Vehicle Weight
De Nardi, French, and Benson w17688 Consumption and the Great Recession
Finkelstein, Taubman, Wright, Bernstein, Gruber, Newhouse, Allen, Baicker, and Study Group w17190 The Oregon Health Insurance Experiment: Evidence from the First Year
Bui, Craig, and Imberman w17089 Is Gifted Education a Bright Idea? Assessing the Impact of Gifted and Talented Programs on Achievement
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us