little employment protection and low unemployment benefits, while the European model (generous benefits and higher duration …

minimum wage causes more unemployment, but also leads to more skill formation as unemployment is concentrated on low … gains of more skill formation outweigh the social welfare losses of increased unemployment. Using a highly conservative …

choice of education is determined endogenously. Job opportunities in an informal sector are available only to workers who … choose not to acquire higher education. We find that increased punishment of informal activities increases the number of …

We develop a simple search equilibrium model of workplace training and education based on two features. First …, investment in education improves job-related learning skills and reduces training costs burdened by firms. Second, firms with … has both a higher inflow rate into unemployment and a higher efficiency of the matching process. While the combined effort …

incentives as it reduces the attractiveness of remaining a low-educated worker. However, unemployment also increases …