In this paper we explicitly model and estimate an education system that produces human capital. An important innovation is that technological change in the production functions associated with any level of education is permitted and the rate of change may be different at different levels and for...

A dynamic general equilibrium model of work, schooling, occupational and sectoral decisions is developed and estimated. The model is fit to data on life cycle employment, schooling, occupational and sectoral decisions, and on life cycle labor earnings, within and between cohorts observed in the...

In this paper we document substantial returns to occupational tenure. Everything else being constant, ten years of occupational tenure are likely to increase wages by at least $19\%$. Moreover, we show that when occupational experience is taken into account, tenure with an industry or an...

This paper introduces a tractable general equilibrium overlapping-generations model of human capital accumulation, and shows that it provides a consistent explanation of several key features of the evolution of the U.S. wage distribution from 1970 to 2000. The framework is based on the...

Two salient changes in the US wage structure have occurred over the past three decades: first, a sharp increase in the wage premium to schooling despite a continual increase in the supply of schooling, and second, a rise and then fall of the wage premium to work experience. Capital-skill...

his paper presents formal models of child development that capture the essence of recent findings from the empirical literature on child development. The goal is to provide theoretical frameworks for interpreting the evidence from a vast empirical literature, for guiding the next generation of...

In this paper, we examine the general equilibrium implications of human capital accumulation in the presence of superstar markets, in which small differences in skill translate into huge differences in earnings. Previous research has concentrated on the microeconomic wage implications of...

This appendix of our paper, "Demographic Change, Human Capital and Welfare", contains further material that could not be included in the paper due to space limitations. It is organized as follows. Section A contains the formal equilibrium definition. Section B provides more results on the fit of...

We study the structure of optimal wedges and wealth taxes in a Mirrleesian economy with endogenous skills. Human capital is a private state variable that drives the skill process of each individual. Building on the findings of the labor literature, we assume that human capital investment is a)...

I show that in a conventional Ramsey model, between one-fourth and one-half of the global income distribution can be explained by a single factor: The effect of large, persistent differences in national average IQ on the private marginal product of labor. Thus, differences in national average IQ...