DP7838 Social Insurance, Education, and Work Ethics
|Publication Date:||May 2010|
|Keyword(s):||education policies, moral hazard, social insurance|
|Programme Areas:||Public Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=7838|
This research shows that moral hazard associated with extant social insurance arrangements causes underinvestment in human capital, because of government?s inability to commit to welfare policies. It then argues that education policies, such as education subsidies or direct public investment in education, may achieve a second best and also help alleviating the deterioration of work norms.