The ratio of skill to unskilled labour stocks in the economy is widely acknowledged to have an important role for development. Can education policy affect the evolution of this ratio? This paper shows that it can, and it also shows that the actual effect of education policy depends on the...

Some countries seem to be lagging behind in global accumulation of skills. As the ratio of skilled to unskilled labour is key for growth (e.g. endogenous growth theory), this situation suggests a gloomy future for developing countries. Is catching up with the developed world?s levels of skills...