The public sector hires disproportionately more educated workers. To rationalize this finding, we propose a model with a perfectly competitive private sector, and non-Walrasian public sector. Our economy also features heterogeneity across individuals and jobs, and a simple sorting mechanism that...

Using individual data from PIAAC and data on youth unemployment for 18 countries, we test how macroeconomic conditions experienced at age eighteen affect the following decisions in post-secondary and tertiary education: (i) enrollment (ii) dropping-out, (iii) type of degree completed, (iv) area...