This paper studies second best policies for education, saving, and labour in an OLG model in which endogenous growth … equilibria are inefficient. The inefficiency is exacerbated if selfish individuals externalize the positive effect of education … on descendents’ productivity. It is shown to be second best to subsidize education even relative to the first best if the …

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 …

Assuming a two-period model with endogenous choices of labor, education, and saving, efficient education policy is … education should be effectively subsidized if, and only if, the elasticity of the earnings function is increasing in education …

Assuming a two-period model with endogenous choices of labour, education, and saving, it is shown to be second … arbitrary utility and learning functions. Efficient incentives for education and saving are analysed under conditions of second … and third best. It is argued that efficient tax policy should care more about incentives for education than for saving. …

The paper studies the effect that skilled labour mobility has on efficient education policy. The model is one of two … periods in which a representative taxpayer decides on labour, education, and saving. The government can only use linear tax … instruments. The mobility does not however affect second best education policy in allocational terms. In particular, education …