This article deals with the issues of different theoretical approaches to education. Education is seen as a tool, how to distinct different marginal productivities of employees. We start from the fact of an information asymmetry on the labour markets, asymmetry between employers and potential...

In imperfectly competitive labor markets returns to skills are lower than their productivity and educational standards may play an important role in stimulating students to provide effort. We propose a principal-agent model to analyze the determinants of student effort and the setting of...

Although the literature on assignment mechanisms emphasizes the importance of efficiency based on agents' preferences, policymakers may want to achieve different goals. For instance, school districts may want to affect student learning outcomes but must take teacher welfare into account when...

We estimate the effect of the 1999 education reform in Poland on employment and earnings. The 1999 education reform in Poland replaced the previous 8 years of general and 3/4/5 years of tracked secondary education with 9 years of general and 3/3/4 years of tracked upper-secondary education. The...

The paper uses data from a large representative survey of Hungarian higher education graduates (DPR 2010) to study the early labour market effects of field of study and college quality. Propensity score matching average treatment effect method is used to reveal the effect of the field of study,...

This study investigates whether the choice for a vocationally versus a generally oriented higher education program entails a trade-off between higher employment chances and better matches at the start of the career (when opting for a vocational orientation) and a lower risk of bad match...

We address the impact of education upon wage inequality by drawing on evidence from fifteen European countries, during a period ranging between 1980 and 1995. We focus on within-educational-levels wage inequality by estimating quantile regressions of Mincer equations and analysing the...

We expand Acemoglu and Pischke's seminal model of training in imperfect labor markets by including the system of collective wage bargaining and the components of firms' training costs. Thus we can adapt their model to institutional changes that occurred since the 1990s. The model and the...

The literature estimating returns to education has often utilized spousal education and parental education as instrument variables (IV). However, due to usual survey designs, both IVs are available only for the individuals whose spouse or parents are present in the same household. The IV...