Virtually all empirical firm-level studies on the demand for labor do not include labor cost in the econometric specification. This is due to the fact that business and innovation survey data usually lack information on labor cost. This paper shows how reliable skill-specific and firm-specific...

We consider a continuum of workers ranked according to their abilities to acquire education and two firms with different technologies that imperfectly compete in wages to attract these workers. Once employed, each worker bears an education cost proportional to his/her initial ability, this cost...

We model educational investment and labor supply in a competitive economy with home and market production. Heterogeneous workers are assumed to have different productivities both at home and in the workplace. We investigate the degree to which there is under-investment in human capital, and...