This paper provides a novel microeconomic foundation for pecuniary human capital externalities in a labor market model …. -- Externalities ; human capital ; multiple equilibria …

selection. Building on their framework we demonstrate that externalities between agents - an agent's utility upon accepting a … when the size of the externalities is arbitrarily small. Our result highlights the degree of control a principal has over …

We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities … externalities can help explain the dynamic process of offshoring, where the most productive firms offshore first and the others …

externalities (social returns to education) there exists a range of microloan amounts that are growth depressing and welfare … divert investment away from human capital: by failing to internalize the social returns to education, households …

fluctuations ; market imperfections ; externalities ; imperfect competition ; taxation …

Identification of the strength of human capital externalities at the aggregate level is still not fully understood. The … existing method may yield positive or negative externalities even if wages reflect marginal social products. We propose an … approach that yields positive average human capital externalities if and only if the marginal social product of workers with …

This paper models the tradeoffs between education in secular subjects, formal and informal, and the formation of … religion-specific human capital. It explores some implications of negative externalities between religious and secular … education. Applications include the tension between science and religion during the European Enlightenment and the development …