This paper examines the relationship between the incentives to work and to invest in human capital through education in a lifecycle optimizing model. These incentives are shown to be mutually reinforcing in a simple stylized model. This theoretical prediction is investigated empirically using...

Numerous studies have documented disproportionate increases in wage rates from receiving educational credentials, as opposed to from just years of education. This study shows 'sheepskin effects' in hours of work that are similar to the sheepskin effects in wage rates. Systematic sheepskin...

Aggregate and average human capital per worker in each of the 50 United States are estimated using microdata from the Annual Demographic File (ADF) and outgoing Rotation Groups (ORG) of the Current Population Survey for 1976-2000 and 1979-2000, respectively, and are compared to one another and...

A study that measures the effects of human capital investment on the deficit financing costs of government spending finds that the lower current and higher future tax rates of deficit financing increases opportunity costs and reduces the benefits of investments.