Market wages reflect expected productivity by using signals of past performance and past experience. These signals are generated at least partially on the job and create incentives for agents to choose high-profile and highly visible tasks. If agents have private information about the...

I explore the efficiency properties of a decentralized labor market for scientists. I use a model where firms produce science by building labs and hiring researchers in a competitive market. Firms may invest in science to produce new scientific knowledge or to increase their absorptive capacity:...

I explore the effect of skill-biased technological change on long-run inequality using a theoretical model where the supply of skilled and unskilled workers, the cost of education, and credit rationing are endogenous. I show that the existence of unequal steady states does not depend on the...