We study optimal tax and educational policies in a dynamic private information economy, in which ex-ante heterogeneous individuals make an educational investment early in their life and face a stochastic wage distribution. We characterize labor and education wedges in this setting analytically...

We exploit rich worker-establishment data to trace the impact of rising international trade exposure in the job biographies of roughly 2.4 million manufacturing workers in Germany (1990–2010). To profit from export opportunities, workers respond by increased employer switching within...