In this paper the individual optimal level of education is set in a frictional labor market, where matching is not perfect. Also search frictions are a function of the average education can improve economic efficiency, not only through improvements in workers productivity, but also making the matching process more efficient, and thus reducing the unemployment level.
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Paper provided by NIPE - Universidade do Minho in its series NIPE Working Papers with number
11/2005.
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