Policies to Create and Destroy Human Capital in Europe
---- Acknowledgements ----
This paper was generously supported by the National Science Foundation (SES-0241858, SES-0099195, SES-0452089); the National Institute of Child Health and Human Development (R01HD43411); a grant to the Committee on Economic Development PAES Group from the PEW Foundation; support from the J.B. Pritzker Consortium on Early Childhood Development at the Harris School of Public Policy, University of Chicago; and the Netherlands Organisation for Scientific Research (NWO Vidi Grant No. 452-07-013,'Skill Formation in Distorted Labor Markets'). An extended version of this paper was presented at the joint conference of CESifo and Center on Capitalism and Society, "Perspectives on the Performance of the Continent's Economies," Venice International University, San Servolo, 21 - 22 July 2006. We especially thank Dennis Snower, Edmund Phelps, Hans-Werner Sinn and the participants for their useful comments and suggestions. In addition we thank Lans Bovenberg, George Gelauff, Coen Teulings and participants of the Netspar-SER-CPB conference, "Reinventing the Welfare State," April 27-28, 2006, The Hague, The Netherlands, for their comments and suggestions. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.