Monday, 8 April 2019

An EU tax credit to preserve incentives for investment in human capital in the context of intra-EU migration

a column by Debora Revoltella, Philipp-Bastian Brutscher and Patricia Wruuck for VOX: CEPR’s Policy Portal

Spending on education underpins the formation of human capital. But intra-EU labour mobility means that returns to such spending often accrue somewhere other than where the investment takes place, which can lead to sub-optimal levels of investment in countries that are subject to persistent outward migration.

This column advocates for more intra-EU coordination on investment in education and proposes a novel mechanism for fostering more investment in human capital across the EU.

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