Alessandrini, Diana; Kosempel, Stephen; Stengos, Thanasis - Rimini Centre for Economic Analysis (RCEA) - 2012
This paper studies the cyclicality of human capital accumulation by using a lifecycle RBC model with two types of heterogeneity: age and productivity in learning. Results show that individuals invest more in human capital during economic downturns. In particular, schooling acts as a buffer...