Education choices, longevity and optimal policy in a Ben-Porath economy

• Published in: Mathematical social sciences Vol. 94; pp. 65 - 81
• Main Authors: Nishimura, Yukihiro, Pestieau, Pierre, Ponthiere, Gregory
• Format: Journal Article Web Resource
• Language: English
• Published: Amsterdam Elsevier B.V 01.07.2018; Elsevier Science Ltd; Elsevier
• Subjects: Asymmetric information; Business & economic sciences; Capital; Decentralization; Demography; Distortion; Domaines particuliers de l’économie (santé, travail, transport...); Economic development; Economics and Finance; Education policy; Endogenous; Finance; Humanities and Social Sciences; Prices; Sciences économiques & de gestion; Special economic topics (health, labor, transportation...); Taxation; Wages & salaries; Working hours

We develop a 3-period overlapping generations (OLG) model where individuals borrow at the young age in order to finance their education. Education does not only increase future wages, but also raises the duration of life, which, in turn, can affect education, in line with Ben-Porath (1967). We exami...