The present paper expands this model by including the intrinsic value of education as a motivation behind getting education. I find that the argument in favour of dual income taxation is strengthened. A comprehensive proportional income tax works as a tax subsidy on human capital investments,...

This paper was inspired by the renaissance that industrial localisation and localised external economies have experienced during the last years. We seek to elucidate the relevance of the theories on localisation and external economies for those that have indeed developed them - the economists....

If worker performance is observable and contractible without cost, then why do we observe "Spencian", unproductive, education? We provide the following explanation. Say that the economy consists of several different sectors, and that agents are uncertain which of these sectors they are best fit...

Using matched worker/plant level data for Norway, trade and technology explanations for the change in skill composition are assessed using direct evidence on the job creation and destruction for workers with high, medium and low education level. In order to disentangle the supply and demand...