D'Amato, Marcello; Mookherjee, Dilip - Centro Studi di Economia e Finanza (CSEF) - 2012
We present a dynamic OLG model of educational signaling, inequality and mobility with missing credit markets. Agents are characterized by two sources of unobserved heterogeneity: ability and parental income, consistent with empirical evidence on returns to schooling. Both quantity and quality of...