Education is a powerful force in building the new Russia: it can help its citizens meet the challenges of the new, emerging democratic society; develop in its labour force the talents, skills and dispositions required in the new economic and social setting; and harmonise national aims with...

​We study a developing economy in which the representative firm's production function exhibits complementarities between human capital and the available level of technology. The firm invests in the acquisition of new technology, while employees decide how much human capital to acquire. The...