Abstract
Social and private returns to education are computed using the structural estimates of an extended Burdett-Mortensen search equilibrium model. The extension includes different skill groups linked via a production function with variable degree of homogeneity, allowing thereby for a unimodal earnings density with a decreasing right tail. We find that the decreasing unemployment risk for higher skill groups and the absence of tuition fees in Germany increase private returns and lead to a too large share of high skilled individuals in the workforce, which is suboptimal from the social point of view. ; Social and private returns to education Search frictions
Item Type: | Journal article |
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Faculties: | Economics Economics > Chairs > Chair in Public Finance |
Subjects: | 300 Social sciences > 330 Economics |
Language: | English |
Item ID: | 19436 |
Date Deposited: | 15. Apr 2014, 08:50 |
Last Modified: | 29. Apr 2016, 09:16 |