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Optimal Higher Education Enrollment and Productivity Externalities in a Two-Sector Model

Volker Meier and Ioana Schiopu

No 3889, CESifo Working Paper Series from CESifo

Abstract: We investigate externalities in higher education enrollment over the course of development in a two-sector model. Each sector works with only one type of labor, skilled or unskilled, and individuals are differentiated according to their cost of acquiring human capital. Both sectors exhibit productivity externalities in the size of the skill-specific labor and in the average human capital of workers. When skill-biased technological change prevails, it may well be the case that intermediate stages of development witness underenrollment in higher education, while highly developed economies experience overenrollment.

Keywords: higher education; enrollment; externalities; two-sector model (search for similar items in EconPapers)
JEL-codes: D62 H23 I21 J24 O10 (search for similar items in EconPapers)
Date: 2012
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Related works:
Journal Article: Optimal higher education enrollment and productivity externalities in a two-sector model (2015) Downloads
Working Paper: Optimal higher education enrollment and productivity externalities in a two-sector model (2013) Downloads
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