@TechReport{iza:izadps:dp8341,
            	author={Gavrel, Frédéric and Lebon, Isabelle and Rebiere, Therese},
            	title={Formal Education Versus Learning-by-Doing},
            	year={2014},
	month={Jul},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={8341},
            	url={https://www.iza.org/publications/dp8341},
	abstract={The efficiency of educational choices is studied in a search-matching model where individuals face a tradeoff: acquiring formal education or learning while on the job. When their education effort is successful, newcomers directly obtain a high-skill job; otherwise, they begin with a low-skill job, learn-by-doing and then search while on-the-job for a high-skill job. Low-skill firms suffer from hold-up behavior by high-skill firms. The low-skill sector is insufficiently attractive and individuals devote too much effort to formal education. A self-financing tax and subsidy policy restores market efficiency.},
	keywords={formal education;learning-by-doing;market efficiency;on-the-job search;search unemployment},
            }