-by-doing, overturns the presumption that formal education is unconditionally beneficial for economic growth. It analyzes a model in which … their human capital with work experience or education. The model shows that in the early stages of development, education … externality. It also demonstrates the possibility of multiple equilibria in which low-income equilibria are characterized by under-education …

their less educated peers. We argue that on-the-job training, being complementary to formal education, is the reason for …