Education and Work

This paper examines the linkage between the incentives to work and to invest in human capital through education. These incentives are shown to be mutually reinforcing in a simple stylized model. This theoretical prediction is investigated empirically using three large micro datasets covering a broad set of countries. As one might expect, education and work are strongly (positively) correlated. This correlation has important implications for models of fiscal policy and economic growth. It also has important implications for the estimation of labor supply and the rate of return to education.


Issue Date:
Mar 03 2000
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/269305
Language:
English
Total Pages:
44
JEL Codes:
J22; I20




 Record created 2018-03-07, last modified 2018-03-07

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