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Education and Work

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  • Trostel, P.
  • Walker, I.

Abstract

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.

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Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 554.

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Length: 28 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:wrk:warwec:554

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Keywords: HUMAN CAPITAL ; EDUCATION ; FISCAL POLICY ; ECONOMIC GROWTH;

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