The authors use a sector model to investigate the correlation between the average level of human capital and wages and the correlation between wages and the cost of living, as proxied by the price of land. They analyse intra-race and inter-race human capital externalities. One consequence of...

We analyze the extent to which intergenerational teams provide information on workers' productivity in the long run. We use a dynamic stochastic framework where wages are reputation-based and consider three possible work arrangements. When agents can only work by themselves we show that some...