We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
TAXATION AND ON-THE-JOB TRAINING DECISIONS.
- Authors
Rosen, Harvey S.
- Abstract
The article analyses the effect of income taxation on the decision to engage in one significant kind of human capital investment, on-the-job training (OJT). Some conceptual problems that arise in an attempt to study econometrically taxes and OJT decisions are also discussed. According to the author the major reason for the dearth of attempts to study OJT econometrically is measurement problems. A major obstacle to empirical analysis of OJT is that one cannot observe its rate of return even ex post. The complications brought about by introducing taxes into this situation can be illustrated by a simple two-period model of lifetime utility maximization. The author remarks that the normative implications of this finding are not entirely clear. There recently have been claims that increases in federal income tax rates have generated serious decreases in the accumulation of physical capital. The results, however suggest that reductions in physical capital may have been accompanied by tax-induced increases in human capital.
- Subjects
TAXATION; EMPLOYEE training; TAXATION economics; HUMAN capital; INCOME; DECISION making; CAPITAL investments; ORGANIZATIONAL change; EMPIRICAL research
- Publication
Review of Economics & Statistics, 1982, Vol 64, Issue 3, p442
- ISSN
0034-6535
- Publication type
Article
- DOI
10.2307/1925942