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Education and Work

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  • Trostel, P.
  • Walker, I.

Abstract

This paper examines the linkage between the incentives to work and to invest in human capital through education. These incentives are shown to be mutually reinforcing in a simple stylized model. This theoretical prediction is investigated empirically using three large micro datasets covering a broad set of countries. As one might expect, education and work are strongly (positively) correlated. This correlation has important implications for models of fiscal policy and economic growth. It also has important implications for the estimation of labor supply and the rate of return to education.

Suggested Citation

  • Trostel, P. & Walker, I., 2000. "Education and Work," The Warwick Economics Research Paper Series (TWERPS) 554, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:554
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    More about this item

    Keywords

    HUMAN CAPITAL ; EDUCATION ; FISCAL POLICY ; ECONOMIC GROWTH;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • I20 - Health, Education, and Welfare - - Education - - - General

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