of labor market reform on unemployment, growth, and welfare. The model has a large number of risk-averse households who … can invest in risk-free physical capital and risky human capital. Unemployed households receive unemployment benefits and … employment effects: the equilibrium unemployment rate has been reduced by approximately 1.1 percentage points from 7.5 to 6 …

achievement. Contrary to many earlier studies, tests for early borrowing constraints suggest that parents are not constrained in … early investments in their children's achievement, and thus that the timing of income does not matter for long-term child …