We show that more human capital improves incentives in a standard optimal taxation problem: common assumptions about preferences and technology imply that the disutility of labor decreases less strongly in unobserved ability if agents have more human capital. Human capital thus reduces the...

We analyze the impact of access to piped water on human capital formation as measured by test scores from standardized school exams at Brasilian primary schools. We find a positive and significant effect of around 11 percent of the standard deviation of mean test scores. The effect of piped...

We analyze the causal effect of education on old-age cognitive abilities using German Socio-Economic Panel (SOEP) data and regional variation in mandatory years of schooling and the supply of schools. Our outcome variable is the score an individual reaches in an ultra-short intelligence test. We...