MENDOLICCHIO, Concetta; PAOLINI, Dimitri; PIETRA, Tito - Center for Operations Research and Econometrics (CORE), … - 2012
We consider an economy where production may use labor of two different skill levels. Workers are heterogeneous and, by investing in education, self-select into one of the two skills. Ex-ante, when firms choose their investments in physical capital, they do not know the level of human capital...