I show how local supply changes create ripple effects in a national educational market. Admitting an applicant to a program will free up a slot to be filled at her next-best alternative. To investigate such substitution effects I re-engineer the centralized admission system of the Danish...

Why do individuals choose different types of post-secondary education, and what are the labor market consequences of those choices? We show that answering these questions is difficult because individuals choose between several unordered alternatives. Even with a valid instrument for every type...

The aim of this study is to determine optimal migration policies for an individual of known age-dependent mortality who accumulates capital by compound interest and also by skill-dependent income. By a continuing choice of several environments, which vary in intrinsic preference and in the rates...

I present a theory on the relationship between educational choice and entrepreneurship in a labour market with asymmetric information. The model shows that, in a labour market where education is used as a signalling device, an imperfect relationship between productivity in education and in the...

This paper investigates the effects of five different vocational rehabilitation (VR) programs on the hazard rates into employment, disability and temporarily withdrawals from the labor market for persons who face severe problems in re-entering the labor market, mostly due to medical problems....

Since 1980, there has been a steady increase in earnings inequality alongside rapid technological growth in the U.S. economy. To what extent does technological change explain the observed increase in earnings dispersion? How does it affect the optimal progressivity of the tax system? To answer...

This paper studies the effects of income taxation on entrepreneurship, empirically and in a structural macro model with entrepreneurial choice. Combining state-level tax data with household and firm data we document that higher and more progressive taxation has a strong negative impact on...

How can colleges find successful applicants? Criteria such as GPA, interviews, essays, and tests provide information about candidates, but which work and why? We shed light on these questions using unique data on the universe of objective and subjective rankings of all college applicants in...

This paper studies school quality in the context of Norwegian compulsory schooling. I demonstrate that even when lagged achievement is not observed, it is possible to construct informative value-added (VA) indicators of persistent school quality by adjusting exam scores for students' background...

Despite important policy implications associated with the allocation of education resources, evidence on the effectiveness of school inputs remains inconclusive. In part, this is due to endogenous allocation; families sort themselves non-randomly into school districts and school districts...