Educating Europe
CESifo, Munich, 2004
CESifo Working Paper No. 1114
![](https://cesifo.org/DocImg/cesifo1_wp1114.jpg?c=1689237139)
The mobility of labor reduces national incentives to invest in internationally applicable education. The European Union could overcome this by allowing member states to institute graduate taxes or income-contingent loans, collected also from migrants. This paper presents calculations on how a graduate tax system could look for Finland. To protect citizens against Leviathan governments, graduate taxes or income-contingent loans could be based on voluntary contracts. Education would then be financed publicly only for those accepting also to share the returns. With EU enlargement, such reforms could generate a triple dividend.
Public Finance