Add to ORKGThis dissertation is a collection of three essays on labor economics and industrial organization. In the first essay, I study how and to what extent labor market frictions, which are defined as the inability to costlessly find jobs or move between jobs, affect workers' schooling decisions. In order to study this link, I use an on-the-job search model. Consistent with the data, the model economy predicts that a higher job-to-job transition rate increases the opportunity cost of a college education, reducing the incentives for schooling. Instead, a higher job separation rate decreases the opportunity cost, leading to more schooling. In addition, a higher job finding rate increases employment duration, which can help college educated workers e...