It Runs in the Family—So Do the Taxes

It Runs in the Family—So Do the Taxes

We’re proud to share that Sylwia Radomska is representing our team at the International Conference on Public Economic Theory (PET 2025) in Lisbon, where she’s presenting her latest research on optimal taxation of human capital and the role of family.

Sylwia’s work explores how parental altruism—yes, the age-old “we only want the best for our children”—shapes decisions about education investments across generations. By integrating altruistic motives into economic models of dynastic families, her research sheds light on how parents' willingness to invest in their children’s future affects the design of optimal policies like education subsidies and income-contingent loans.

The findings? Altruistic parents work more and spend more on their children’s education—even in the face of taxation—changing the calculus for policy makers. In fact, with altruistic behavior factored in, governments may need less intervention to achieve optimal outcomes. This research adds a new layer to the debate on fairness, efficiency, and the intergenerational transmission of opportunity.

 

23/Jun/2025 - 25/Jun/2025
ISEG Lisbon School of Economics and Management