We estimate the effects of unobserved skills on labor market outcomes by investigating a change in the distribution of unobserved skills. Among people with the same levels of observed skills such as education and work experience, there are still disparities in labor market outcomes. since...

Much research shows that students take account of their perceived comparative advantage in mathematics relative to verbal skills when choosing college majors and career tracks. There is also evidence for an important role for comparative advantage in explaining the gender gap in college STEM...

Policy-makers face a trade-off between the provision of higher levels of schooling and earlier labour market entries. A fundamental education reform in Germany tackles this trade-off by reducing high school by one year while leaving the total instructional time unchanged. Employing...