This paper studies how linear tax and education policy should optimally respond to skill-biased technical change (SBTC). SBTC affects optimal taxes and subsidies by changing i) direct distributional benefits, ii) indirect redistributional effects due to wage-(de)compression, and iii) education...

We show that a calibrated dynamic skill accumulation model allowing for comparative advantages, can explain the weak (or negative) effects of schooling on productivity that have been recently reported (i) in the micro literature on compulsory schooling, ii) in the micro literature on estimating...

Despite extensive literature on peer effects, the role of peers on personality skill development remains poorly understood. We fill this gap by investigating the effects of having disadvantaged primary school peers, generated by random classroom assignment and parental migration for employment....

Despite extensive literature on peer effects, the role of peers on personality skill development remains poorly understood. We fill this gap by investigating the effects of having disadvantaged primary school peers, generated by random classroom assignment and parental migration for employment....

Using the Youth in Transition Survey we estimate a Roy model with a three dimensional latent factor structure to consider how parental valuation of education, cognitive skills and non-cognitive skills in uence endogenous schooling decisions and subsequent labour market outcomes in Canada. We...

Using the Youth in Transition Survey we estimate a Roy model with a three dimensional latent factor structure to consider how parental valuation of education, cognitive skills and non-cognitive skills influence endogenous schooling decisions and subsequent labour market outcomes in Canada. We...

This paper examines the effects of skill advantages at age six on different types of parental investments, and long-run outcomes up to age 27. We exploit exogenous variation in skills due to school entry rules, combining 20 years of Chilean administrative records with a regression discontinuity...