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http://www.itinerainstitute.org/en/library/_paper/labour-market-and-investment-in-human-capital-in-europe/
Labour market and investment in human capital in Europe
04 February 2010
High levels of taxation and generous welfare state arrangements tend to decrease labour force participation, hours worked and thereby the returns on human capital investments. Low skilled and older workers are the first concerned by this phenomenon. What can we do to improve their participation rate in the labour market? This IZA report suggests to reduce labour market distortions. But it mainly recommends to reformulate activation and training policies in order to increase the utilization and the maintenance of human capital during the working life.

http://ftp.iza.org/dp4680.pdf

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