In an overlapping generations model, rents to human capital play a key role in increasing savings. In the absence of such rents, the return to human capital is entirely appropriated by the old and accumulation is entirely determined by the income to fixed factors. If rents are introduced by...

Understanding of the substantial disparity in health between low and high socioeconomic status (SES) groups is hampered by the lack of a suffciently comprehensive theoretical framework to interpret empirical facts and to predict yet untested relations. We present a life-cycle model that...

The validity of family background variables instrumenting education in income regressions has been much criticized. In this paper, we use data of the 2004 German Socio-Economic Panel and Bayesian analysis in order to analyze to what degree violations of the strong validity assumption affect the...

In The Race Between Education and Technology, Claudia Goldin and Lawrence Katz employ a powerful theoretical framework to investigate how inequality is affected by the interrelation between changes in technology and changes in job-market skills. The investigation is carried out with great vision...

We develop a simple overlapping generations model to analytically show that population aging leads to increased educational efforts through a general equilibrium effect. The key mechanism at work in the model is that scarcity of raw labor increases the rate of return to human capital relative to...

Using the Labour Force Survey (LFS) we explore the difference international migration makes for the distribution of occupational levels for any given level of education in the two countries of interest: Austria and Germany. Migrant outcomes are also being compared with home country outcomes,...

Gender-specific patterns of self-selection into competitive and cooperative environments may have multiple reasons. One of the most prominent explanations to this point is, that there are inherent differences between men and women when it comes to preferences regarding competition. We take a...

This paper provides an ex ante assessment of the implementation of the conditional cash transfer (CCT) program in the Philippines, the Pantawid Pamilyang Pilipino. The study investigates the impact of CCT on current poverty, and the impact of this extra money on school attendance under different...

This paper presents a theoretical model to analyze the effects of technology change on growth rates of income and human capital in the uncertain environments of technology. The uncertainty comes from two sources; the possibility of a technology advance and the characteristics of new...

We present a generalized solution to Grossman’s model of health capital (1972), relaxing the widely used assumption that individuals can adjust their health stock instantaneously to an “optimal” level without adjustment costs. The Grossman model then predicts the existence of a health...