This paper considers education investment and public education subsidies in closed and open economies with an … extortionary government. The extortionary government in a closed economy has incentives to subsidize education in order to overcome … their education policies if highly productive labor is fully mobile. Extortionary governments' incentives for education …

This paper develops a model of costly firm creation in an economy with weak institutions, costly business environment … environment tend to be more effective in creating productive firms when accompanied by narrowing skill gaps. Similarly, more … conducive business regulations amplify the positive impact on firm creation of better education and reduced skill mismatches. To …