This paper offers a theoretical and empirical analysis of child labor, schooling, and `idleness' (neither work nor school), with particular emphasis on the roles of child ability and credit constraints in determining these decisions. We show theoretically that `idleness' may be chosen optimally...

Even tough child labor is a wide spread phenomena in Bolivia, little is known about its main determinants. By using a bivariate probit model in order to take into account the joint nature of the decisions between labor and schooling, this paper investigates which are the key factors that...

We analyze the importance of information about individual skills for understanding economic growth and income inequality. The paper uses the framework of an OLG economy with endogenous investment in human capital. Agents in each generation differ by random individual ability, or talent, which...

Recent evidence based on longitudinal firm-level data suggests that within-firm productivity growth explains about 50 percent of total factor productivity growth in the manufacturing sector while net entry effects account for about 30 percent of total factor productivity growth. These two forces...

We analyze the importance of information about individual skills for understanding economic growth and income inequality. The paper uses the framework of an OLG economy with endogenous investment in human capital. Agents in each generation differ by random individual ability, or talent, which...