• Overeducation Over the Lifecycle: Disentangling Frictions, Innate Ability, and Job‑Specific Experience

    Aleandro Palazzo

    [Draft]
    Abstract

    I study overeducation persistence with a directed-search model where workers differ in education, field, innate ability, job-specific experience, and age. Calibrated to the NLSY79 and O*NET, a structural decomposition shows that nontransferable job-specific experience is the dominant source of long-run persistence, frictions matter mostly early on, and slow ability learning amplifies both channels. Age effects and apparent overeducation are minor. Education is treated as exogenous to focus on post-schooling dynamics; selection is captured through heterogeneous ability distributions across education groups. Policies that speed early learning and reduce frictions are most effective.

    Paper thumbnail

  • Rethinking Investments in Human Capital in the Age of Artificial Intelligence

    Aleandro Palazzo

    Abstract

    Coming soon...