The ‘basic skills’ of literacy and numeracy are among the most fundamental attributes of human beings and their civilization, lying at the root of our capacity to communicate and live and work together, to develop and share knowledge, science and culture. Their contribution to workforce...

We model educational investment and labor supply in a competitive economy with home and market production. Heterogeneous workers are assumed to have different productivities both at home and in the workplace. We show that there are increasing returns to education at the labor market...

Given its signiÖcance in practice, piecewise linear taxation has received relatively little attention in the literature. This paper o§ers a simple and transparent analysis of its main characteristics. We fully characterize optimal tax parameters for the cases in which budget sets are convex...