unemployment rates. It may be the case that this locus is steep enough to generate increasing returns to education. This may lead … to multiple equilibria: a high-education equilibrium may coexist with a low-education equilibrium. In the former, the … Pareto-ranked, but the latter is preferred to the former by workers, while `savers' prefer the high-education equilibrium. …

This paper analyses theoretically and empirically how employment subsidies should be targeted. We contrast measures … efficiency" (AWE). Thereby we can identify policies that (a)improve employment and welfare, (b)do not raise earnings inequality …

for employment protection, provided it is uniform across workers and not specifically higher for older workers. It …

may even reduce welfare. The reason is that it crowds our proprietary innovation, which on net may reduce total innovation …

distorts occupational choice. We study this possibility in the context of a model with horizontal innovation, where the …