To examine how human capital accumulation influences both economic growth and income inequality, we carefully endogenize the demand and supply of skills. We explicitly introduce the costs and externalities in education, and examine how both relate to learning-by-doing and R&D intensity. In...

The growing finance wage premium is related to a modest net reallocation of skilled workers from non-finance sectors into finance in a broad sample of 24 countries over 35 years. The reallocation is higher when the finance wage premium grows faster than the contribution of the financial sector...

This paper revisits traditional human capital models and proposes a new conceptual framework of human capital accumulation, anchored in skills development, to illustrate the phenomenon and implications of youth economic disengagement. In the framework, youth economic disengagement is defined as...