educational type with high consumption value and low effort costs. This increases the skill mismatch and aggregate unemployment in …

associated with high consumption value and low effort. This increases the skill mismatch and aggregate unemployment in the …

-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 …

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 …

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

minimum wage causes more unemployment, but also leads to more skill formation as unemployment is concentrated on low … gains of more skill formation outweigh the social welfare losses of increased unemployment. Using a highly conservative …

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 …