We study the effect of a declining labor force on the incentives to engage in labor-saving technical change and ask how this effect is influenced by institutional characteristics of the pension scheme. When labor is scarcer it becomes more expensive and innovation investments that increase labor...

We study the effect of a declining labor force on the incentives to engage in labor-saving technical change and ask how this effect is influenced by institutional characteristics of the pension scheme. When labor is scarcer it becomes more expensive and innovation investments that increase labor...

Beyond years of schooling, educational content can play an important role in the process of economic development. Individuals ́choices of educational content are often shaped by the political economy of government policies that determine the incentives to acquire various skills. We first...

This paper provides a rationale for the revival of protectionism, based on the rise of the educated class. In a trade model with heterogeneous workers and entrepreneurs, globalization generates aggregate gains but has distributional effects, which can be attenuated through taxation. By playing a...

We investigate the impact of incremental trade liberalization in a dynamic model of endogenous growth with heterogeneous firms and costly trade. Growth originates from horizontal specialization and the steady state productivity growth rate is positive. Innovations require costly R&D and are...

This paper aims to show the evolution of the role and importance of education in economic theory, especially in theoretical approaches to economic development after World War II. In order to find answers and to present a current issue why and how certain countries have made progress while others...

We study changes in 130 countries' indices of revealed comparative advantage for 1,240 products between 1995 and 2010, to answer: (i) whether export diversification is path-dependent, and whether it is more difficult to diversify into more sophisticated products; and (ii) whether education helps...

Although many U.S. state policies presume that human capital is important for state economic development, there is little research linking better education to state incomes. In a complement to international studies of income differences, we investigate the extent to which quality-adjusted...

Although many U.S. state policies presume that human capital is important for state economic development, there is little research linking better education to state incomes. In a complement to international studies of income differences, we investigate the extent to which quality-adjusted...

Although many U.S. state policies presume that human capital is important for state economic development, there is little research linking better education to state incomes. In a complement to international studies of income differences, we investigate the extent to which quality-adjusted...