We study Pareto optimal tax and education policies when human capital upon labor market entry is endogenous and … individuals face wage uncertainty. Though optimal labor distortions are history-dependent, i.e. depend on income and education …-contingent loans. To take themodel to the (US) data, we simplify the model to a binary education decision (graduating from college or …

education wedges in this setting analytically and numerically, using a calibrated example. We present ways to implement the … given out to agents during education. These repayment plans are contingent on loan size and income and capture the history … dependence of the labor wedges. Applying the model to US-data and a binary education decision (graduating from college or not) we …

services are produced both in the market and within the households. We use the model to examine how unemployment and welfare … reduces unemployment whereas a tax cut on goods has no effect. A reform involving tax differentiation, with lower taxes on …

accounts: a retirement account (covering pensions), an unemployment account (covering unemployment support), a human capital … account (covering education and training), and a health account (covering insurance against sickness and disability). Instead … may be expected to play a substantial role in reducing unemployment, encouraging labour force participation, promoting …

traditional predictors of poor labour market outcomes (e.g. education and school dropout status), we find a strong concentration …