In this model of education, where individuals are exposed both to educational risk and to wage risk within the skilled … enhancing the quality of education. The necessary expenditures are optimally financed by regressive tuition fees and the net …

positively skewed. Our best guess of ex ante risk in university education is a coefficient of variation of about 0.3, comparable …

inequality and marriage patterns at the county level in nineteenth-century Prussia. Formally the landed elite could have inuenced … not only the labor relations with the peasants but also their marriage decisions. Using cross-sectional as well as panel … analysis we find no evidence that noble landowners directly affected marriage rates. Instead we find a robust negative …

. The quantity and quality are jointly set by a government agency wishing to maximize the quality of basic education per … stages of education: basic and advanced (college), the latter being required of teachers. The cost of hiring teachers is … workers, hence to the college premium. We show that this will exacerbate the negative trends in the quality of basic education …

linear labor tax rate and optimal linear education subsidies. The optimal income tax trades off social insurance against … incentives to work and to invest in human capital. Education subsidies are not used for social insurance, but are only targeted … at off-setting the distortions of the labor tax and internalizing a fiscal externality. Both optimal education subsidies …

) use of marriage is affected by the possibility of divorce. -- post-marital education ; marriage contract ; divorce … where complete specialization (one of the spouses uses up all the education resources) is optimal with no divorce risk …. Symmetry in education (both spouses receive an equal amount of education) then acts like an insurance device in case of divorce …

We present an equilibrium model with inter-linked frictional labour and marriage markets. Women's flow value of being … sequential job search, and can choose to improve their labour market returns as well as their marriage prospects by undertaking a …

This paper considers how optimal education and tax policy depends on the risk properties of human capital. It is … positive or a negative education premium. In the same model a positive intertemporal wedge is optimal. A set of generalizations …, including non-observability of education, non-observability of consumption, and temporal resolution of uncertainty, are then …