This paper studies optimal taxation schemes for education in a search-matching model where the labor market is divided between a high-skill and a low-skill sector. Two public policy targets - maximizing the global employment level and optimizing the social surplus - are studied according to...

In the past 15 years, employment, labor market participation, and wages have grown significantly in Brazil. Improved labor market outcomes have been the main drivers of reductions in poverty and inequality. Sustaining Employment and Wage Gains in Brazil: A Skills and Jobs Agenda analyzes...