@article{5a90019e765c4c769afc68086c71b3a7,
title = "Optimal higher education enrollment and productivity externalities in a two-sector model",
abstract = "We analyze the optimal share of the skilled workforce over the course of development with two sectors using skilled and unskilled labor respectively, and technological spillovers from higher education enrollment. Productivity in each sector depends on the average quality of workers and the size of the workforce. When skill-biased technological change prevails, this structure of externalities coupled with the endogenous ability sorting of workers may well produce a pattern of overenrollment in early and late stages of development and underenrollment in between. Our normative analysis is followed by a positive analysis exploring how policy would differ under alternative political objectives.",
keywords = "Enrollment, Externalities, Higher education, Two-sector model",
author = "Volker Meier and I. Schiopu",
note = "Funding Information: We thank two anonymous referees, Gerhand Glomm, Michael Kaganovich, Barbara Wolfe, and participants of conferences at Toulouse (Econometric Society European Meeting), Aarhus (European Society for Population Economics), Ljubljana (European Association of Labour Economists), Taormina (International Institute of Public Finance), Aix-en-Provence (Journ{\'e}es Louis-Andr{\'e} G{\'e}rard-Varet) and Zurich (Economics of Education Group of the German Economic Association), and seminars at ESADE and the University of Munich for useful comments. Schiopu acknowledges financial support from Banc Sabadell and Generalitat de Catalunya (grant 2014 SGR 1079 ). Appendix Publisher Copyright: {\textcopyright} 2014 Elsevier B.V.",
year = "2015",
month = jan,
day = "1",
doi = "10.1016/j.jpubeco.2014.11.003",
language = "English",
volume = "121",
pages = "1--13",
journal = "Journal of Public Economics",
issn = "0047-2727",
publisher = "Elsevier B.V.",
}