This paper shows that the existence and persistence of 'overeducation' can be explained by a simple extension of the efficiency wage model. When calibrated to fit the amounts of overeducation found in most empirical studies, the model implies that both the relative wage and the relative...

This paper presents a simple analytical model of the market for hard drugs. The key assumptions are (i) a distinction between new users and existing addicts, (ii) imperfect competition, (iii) selective marketing efforts towards potential users, and (iv) the existence of policy effects on...