We study optimal contracts offered by two firms competing for the exclusive services of one worker, who is privately informed about her ability and her motivation. Firms differ both in their production technology and in the mission they pursue and a motivated worker is keen to be hired by the...

This paper examines how formal education and experience in the labour market correlate with measures of human capital available in The Survey of Adult Skills, a product of the OECD Programme for the International Assessment of Adult Competencies (PIAAC). The findings are consistent with the...

We consider the economic implications of a compressed wage structure which is exogenously determined by institutions. An important feature of our analysis is that human capital is endogenous and can be achieved either as formal education or as informal training within firms after entering the...