European labour markets have known three major changes over the past three decades : the complexification of the technological environment, the growth of general education across the workforce, and rising unemployment. Taken together, do these facts reflect the inefficiency of schooling and...

This paper examines the impact of labor market frictions and institutions on the divide of schooling investment between general and specific skills. We offer a simple matching model of unemployment in which individuals determine the scope and intensity of their skills. In partial equilibrium, we...