The effects of a tax deduction for lifelong learning expenditures
Publication date
2023
Authors
van den Berge, Wiljan
Jongen, Egbert
van der Wiel, Karen
Editors
Advisors
Supervisors
Document Type
Article
Metadata
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License
cc_by
Abstract
We study the effects of a tax deduction for lifelong learning, exploiting exogenous variation in the effective costs of lifelong learning due to jumps in tax bracket rates. We use a regression kink design and tax return data on the universe of Dutch taxpayers. Low-income individuals show no response, but high-income individuals are more likely to report lifelong learning expenditures (though not a higher amount) when net costs are lower. Furthermore, for high-income individuals the effect peaks at the age interval 40–45 years of age.
Keywords
Lifelong learning, Regression kink design, Tax deduction, Accounting, Finance, Economics and Econometrics
Citation
van den Berge, W, Jongen, E & van der Wiel, K 2023, 'The effects of a tax deduction for lifelong learning expenditures', International Tax and Public Finance, vol. 30, no. 3, pp. 729–756. https://doi.org/10.1007/s10797-022-09736-y