A country that experiences a shortage of workers with particular skills naturally considers two responses: import skills or produce them. Skill import may result in large-scale migration, which will not be to the liking of the natives. Skill production will require financial incentives, which...

This paper develops a one sector, two-input model with endogenous human capital formation. The two inputs are two types of skilled labor: "engineering," which exerts a positive externality on total factor productivity, and "law", which does not. The paper shows that a marginal prospect of...

This paper develops a one sector, two-input model with endogenous human capital formation. The two inputs are two types of skilled labor: "engineering," which exerts a positive externality on total factor productivity, and "law," which does not. The paper shows that a marginal prospect of...