Due to a tax law implemented in 1998, Dutch employers can claim an extra tax deduction when they train employees aged 40 years or older. This causes a discontinuity in a firm's cost of training an employee. We exploit this discontinuity to identify two effects: the effect of the tax deduction on...

Skill and Australia’s Productivity Surge examines the changing demand for skills and the effect of increased skill on productivity growth. It finds that Australia’s productivity surge post 1993-94 was mainly due to factors other than the increase in the skill of the workforce.