In the U.S. there are large differences across States in the extent to which college education is subsidized, and there are also large differences across States in the proportion of college graduates in the labor force. State subsidies are apparently motivated in part by the perceived benefits...

Although restrictive immigration policies are pervasive in developed countries, there is a tendency to allow skilled labor to migrate more freely than unskilled labor. In models where free trade in product markets implies factor price equalization, after adjusting for efficiency differences, as...