It has long been recognized that an improved standard of living results from advances in technology, not from the accumulation of capital. It has also become clear that what truly separates developed from less-developed countries is not just a gap in resources or output but a gap in knowledge....

We develop a general equilibrium overlapping generations model which is based on the view that education makes workers more productive by increasing their ability to learn from work experience, rather than providing skills that directly increase productivity. One important implication of the...

Within-country differences in educational outcomes are compared for a large group of industrialised countries. We investigate where inequality is greatest, the association between inequality in learning and average levels of learning, the interpretation of measured levels of inequality, and...