Any serious empirical study of factor substitutability has to allow the data to display complementarity as well as substitutability. The standard approach reflecting this idea is a translog specification – this is also the approach used by numerous studies analyzing the relative capital-skill...

At the firm level, revenue and costs are well measured but prices and quantities are not. This paper shows that because of these data limitations estimates of returns to scale at the firm level are for the revenue function, not production function. Given this observation, the paper argues that,...

We study the impact of office and computing machinery (OCM) on the demands for workers with different educational levels. The empirical analysis relies on a system of demand equations that nests the translog, the generalised Leontief and the normalised quadratic specifications. Using panel data...

This paper examines the impact of innovations and wages on the demand for heterogeneous labour. Based on matched data from the IAB-establishment panel survey and the files of the employment statistics register for the year 1995, input shares derived from a generalised Leontief cost function are...

In recent years, many states, including California, Texas, and Oregon, have changed admissions policies to increase access to public universities for students from lower socioeconomic backgrounds. A key concern, however, is how these students will perform. This paper examines the relationship...

We examine the links between various measures of university quality and graduate earnings in the United Kingdom. We explore the implications of using different measures of quality and combining them into an aggregate measure. Our findings suggest a positive return to university quality with an...

Reduced-form tests of scale effects in markets with search, run when aggregate matching functions are estimated, may miss important scale effects at the micro level, because of the reactions of job searchers. A semi-structural model is developed and estimated on a British sample, testing for...

We apply the collective consumption model of Browning, Chiappori and Lewbel (2006) to analyse economic well-being and poverty among the elderly. The model focuses on individual preferences, a consumption technology that captures the economies of scale of living in a couple, and a sharing rule...

Motivated by anecdotal as well as econometric evidence from Italy, we ask whether private schools can provide lower quality than public schools. Using a stylized model of the education market with sequential entry of a public and a private school, we show that, depending on the underlying...

We collect data on operations, targets and human resources management practices in over 1,800 schools educating 15-year-olds in eight countries. Overall, we show that higher management quality is strongly associated with better educational outcomes. The UK, Sweden, Canada and the US obtain the...