In this paper we study the quantitative macroeconomic effects of public education spending in USA for the post … education spending is justified by externalities in human capital. Our base calibration, based on moderate sized human capital … externalities, suggests that public spending on education is both growth and welfare promoting. However, given that public education …

This study investigates whether young unemployed graduates who accept a job below their level of education accelerate … or delay the transition into a job that matches their level of education. We adopt the Timing of Events approach to … started searching for a job right after leaving formal education. We find that overeducation is a trap. This trap is …