This paper aims to disentangle the factors determining the financial skills of young people in order to inspire effective policies aimed at improving the financial literacy of the population. PISA 2012 data is used. Special attention is paid to the sample selection and simultaneity biases that...

In this paper we show that inequality and unemployment are related positively across the European continent, within countries, between countries and through time. This contradicts the often-repeated view that unemployment in Europe is attributable to rigid wage structures, high minimum wages and...

This paper investigates the nature of income inequality across nations. Several exercises, such as variance decompositions, simulations and counter-factual analyses are performed. We find that, although total factor productivity has a leading role in explaining the dispersion of output per...