This paper examines the linkage between the incentives to work and to invest in human capital through education. These incentives are shown to be mutally reinforcing in a simple stylized model. This theoretical predicton 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
To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.