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 …

This paper considers how optimal education and tax policy depends on the risk properties of human capital. It is … positive or a negative education premium. In the same model a positive intertemporal wedge is optimal. A set of generalizations …, including non-observability of education, non-observability of consumption, and temporal resolution of uncertainty, are then …

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 …

This paper develops a four-sector equilibrium search and matching model with informal sector employment opportunities … incentives as it reduces the attractiveness of remaining a low-educated worker. However, unemployment also increases …

insurance against unemployment caused by labor market frictions and hence increases the incentives for education. We show within … a matching model that reducing the start-up costs for new firms results in higher take-up rates of education. It also …