Human capital plays an important role in the theory of economic growth, but it has been difficult to measure this abstract concept. We survey the psychological literature on cross-cultural IQ tests, and conclude that modern intelligence tests are well-suited for measuring an important form of a...

American students work less than East Asian students in high school, but work more in college. We propose an explanation for this puzzle, using a two-stage-signaling model. Signaling can occur over time both in high school and college. We show that main signaling stage may be high school or...

Human capital plays an important role in the theory of economic growth, but it has been difficult to measure this abstract concept. We survey the psychological literature on cross-cultural IQ tests, and conclude that modern intelligence tests are well-suited for measuring an important form of a...

This chapter analyzes the effects of an aging population on individual skill choices and the production structure by means of a dynamic general equilibrium model with overlapping generations and probabilistic aging. The model allows for capital-skill complementarity, which strongly affects the...

In an environment where children's time has an economic value and employment opportunities for educated workers are scarce, parental investments in their children's education may not be driven entirely by poverty and credit constraints. We offer evidence that children's participation in child...

Using Finnish panel data, we study how entrepreneurs differ from workers in education and income dynamics. We find that workers have higher median income in all educational groups. Without additional controls, entrepreneurs have higher average income with all but undergraduate level of...