This paper studies second best policies for education, saving, and labour in an OLG model in which endogenous growth results from human capital accumulation. Government expenditures have to be financed by linear instruments so that growth equilibria are inefficient. The inefficiency is...

This paper employs a two-period life-cycle model to derive the optimal tax policy when educational investments are subject to endogenous credit constraints. Credit constraints arise from the limited commitment of creditors to repay loans and from the moral hazard problem due to private...

Western labor markets face major challenges caused by demographic changes. They increasingly experience a shortage of skilled workers and face the problem of an increasing disparity between a reduced group of active workers contributing to the pension scheme and a rising share of an older...

This paper investigates two mechanisms through which education may affect cognitive skills in adolescence: the role of instructional quantity and the timing of instruction with respect to age. To identify causal effects, I exploit a school reform carried out at the state level in Germany as a...

Online education options have proliferated in recent years, with significant growth occurring at state-sponsored virtual schools. However, there is no prior credible evidence on the quality of virtual courses compared to in-person courses in U.S. secondary education. We compare the performance...

We evaluate the impact on earnings, pensions, and further labor market outcomes of two parallel educational reforms increasing instructional time in Swedish primary school. The reforms extended the annual term length and compulsory schooling by comparable amounts. We find striking differences in...

While there is a big literature on the benefits of pre-school education, only little is known why kindergarten attendance improves later-life outcomes. This is partly because most studies analyze the effect of complete 2 years pre-school programs. In order to shed light into the black box of...

This paper establishes a new fact about educational production: ordinal academic rank during primary school has long-run impacts on later achievement that are independent from underlying ability. Using data on the universe of English school students, we examine a setting in which the same...