Ample evidence indicates that a person's human capital is important for success on the labor market in terms of both wages and employment prospects. However, unlike the efforts to identify the impact of school attainment on labor-market outcomes, the literature on returns to cognitive skills has not yet provided convincing evidence that the…

This paper provides a longitudinal perspective on changes in Italian men's earnings inequality since the late 1970s by decomposing the earnings autocovariance structure into its long-term and transitory parts. Cross-sectional earnings differentials grew over the period and the longitudinal analysis shows that such growth was determined by the…

Applies comparative techniques originated by K. Wolpin and G. Psacharopulos to discriminate between the "weak" and "strong" screening hypotheses, employed to determine whether societal investment in upgrading or expanding education is justified. Controlling for sample selection, this study finds evidence for weak screening in…