The demographic cycle and optimal schooling choices

A model is developed that enables the authors to estimate the effects of demographic cycles on both earnings and schooling. The model is tested using data from the 1991 Korean Occupational Wage Survey. The results indicate that cohorts following large birth cohorts in the cycle choose relatively less formal schooling compared to pre-peak cohorts, and that post-peak cohorts also have lower incomes. This result concerning South Korea is consistent with findings from previous studies concerning the United States.     

Determinants of internal and external R&D: Some Dutch evidence

Summary Innovating firms can choose to engage in either internal or external R&D, or in both. In the current study, we shall examine internal and external R&D separately to determine empirically the market structure characteristics explaining the external R&D share and the differences in market structure determinants between internal and external R&D. Our results indicate that a government policy that aims at stimulating technological progress by offering external research facilities is particularly interesting for smaller, capital-intensive firms operating in less concentrated markets.We would like to thank Alfred Kleinknecht for providing the R&D data and Kees Bakker and Yvonne Prince for providing the market structure data. We thank Alfred Kleinknecht, Bart Nooteboom and an anonymous referee for their comments and suggestions We acknowledge a research grant from the Stichting KMO Fonds.