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Education and Work

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Author Info
Trostel, P.
Walker, I.

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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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File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/workingpapers/publications/twerp554.pdf
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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
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Handle: RePEc:wrk:warwec:554

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

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Find related papers by JEL classification:
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
I20 - Health, Education, and Welfare - - Education - - - General

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. von Greiff, Camilo, 2007. "Effects of Redistribution Policies - Who Gains and Who Loses?," Research Papers in Economics 2007:12, Stockholm University, Department of Economics. [Downloadable!]
  2. Alison L. Booth & Melvyn B. Coles, 2008. "Tax Policy and Returns to Education," CEPR Discussion Papers 591, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
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