-sector general equilibrium model featuring matching frictions and worker-firm wage bargaining. Workers are assumed to differ in … ability, and the choice of education is determined endogenously. Job opportunities in an informal sector are available only to … workers who choose not to acquire higher education. We find that increased punishment of informal activities increases the …

This paper studies second best policies for education, saving, and labour in an OLG model in which endogenous growth … equilibria are inefficient. The inefficiency is exacerbated if selfish individuals externalize the positive effect of education … on descendents' productivity. It is shown to be second best to subsidize education even relative to the first best if the …

accumulation. When young, individuals decide on education, saving, and nonqualified labour. When old, individuals supply qualified … if selfish individuals externalize the positive effect of education on descendents' productivity. It is shown to be … second best not to distort education if the human capital investment function is isoelastic. If the function is not …

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 …

We develop a model of education where individuals face educational risk. Successfully entering the skilled labor sector … depends on individual effort in education and public resources, but educational risk still causes (income) inequality. We show …, because combining skill-specific tuition fees and public education spending provide both insurance and redistribution at lower …

work a child does, are private information, the second-best policy uses a combination of need and merit based education …

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 …

This paper studies a two-region model in which unemployment, education decisions and interregional migration are … change reduces wages of the unskilled. Both education and migration decisions are distorted by a uniform unemployment … endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are …