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entrepreneurs have more control than employees over the employment of and accruals from assets, such as human capital. The second …
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I apply Ricardo’s principle of comparative advantage to a theory of factor substitutability in a model with a continuum of worker and job types. Highly skilled workers have a comparative advantage in complex jobs. The model satisfies the distance-dependent elasticity of substitution (DIDES)...
Persistent link: https://www.econbiz.de/10011327541
This paper studies how linear tax and education policy should optimally respond to skill-biased technical change (SBTC). SBTC affects optimal taxes and subsidies by changing i) direct distributional benefits, ii) indirect redistributional effects due to wage-(de)compression, and iii) education...
Persistent link: https://www.econbiz.de/10012404177
Estimates of the effect of education on GDP (the social return) have been hard to reconcile with micro evidence on the private return to schooling. We present a simple explanation combining two ideas: imperfect substitution and endogenous skill-biased technological progress and use cross-country...
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We examine how the gender of a sibling affects earnings, education and family formation. Identification is complicated … by parental preferences: if parents prefer certain sex compositions over others, childrenś gender affects not only the … based on the gender of the other twin. We find that the gender of the sibling influences both men and women, but in a …
Persistent link: https://www.econbiz.de/10010532574
We apply a recently proposed method to disentangle unobserved heterogeneity from risk in returns to education. We replicate the original study on US men and extend to US women, UK men and German men. Most original results are not robust. A college education cannot universally be considered an...
Persistent link: https://www.econbiz.de/10011383274
spells in entrepreneurship versus wage employment, thereby accounting for selectivity into entrepreneurial positions based on …) constraints faced by entrepreneurs when optimizing the profitable employment of their education. Entrepreneurs have more personal … control over the profitable employment of their human capital than wage employees. …
Persistent link: https://www.econbiz.de/10011379475