TY  - RPRT
        AU  - Gavrel, Frédéric
AU  - Lebon, Isabelle
AU  - Rebiere, Therese
        TI  - Formal Education Versus Learning-by-Doing
        PY  - 2014/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8341
        UR  - https://www.iza.org/publications/dp8341
        AB  - 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.
        KW  - formal education
KW  - learning-by-doing
KW  - market efficiency
KW  - on-the-job search
KW  - search unemployment
        ER  -