We develop a model of retirement and human capital investment to study the effects of tax and retirement policies. Workers choose the supply of raw labor (career length) and also the human capital embodied in their labor. Our model explains a significant fraction of the US-Europe difference in...

We develop a model that accounts for several stylized facts about immigrant earnings. First, it implies that new immigrants learn less than natives with the same level of schooling. Second, depending on the age of immigration, it implies that initially, immigrant earnings need not grow faster...

We study human capital investment decisions in the face of risk. Human capital is an important source of uninsurable idiosyncratic risk. However, the few studies that focus on the effect of risk on human capital investment typically treat human capital like any other risky asset, without taking...

We study the effect of alternative monetary policies during a credit crunch, modeled as a shock to collateral constraints. We consider a model with entrepreneurs that are heterogeneous in their productivity and net worth, face collateral constraints that limit their investment, and whose...