This paper revisits the question of how brain drain affects the optimal education policy of a developing economy. Our framework of analysis highlights the complementarity between public spending on education and students' efforts to acquire human capital in response to career opportunities at...

This paper develops a dynamic model of schooling and occupational choices that incorporates personality traits, as measured by the "big five" traits. The model is estimated using the HILDA dataset from Australia. Personality traits are found to play an important role in explaining education and...

We study the joint design of nonlinear income and education taxes when the government pursues redistributive objectives. A key feature of our setup is that the ability type of an agent can affect both the costs and benefits of acquiring education. Market remuneration of agents depends on both...