Sixty percent of medical students switch specialties between the first and fourth year of medical school. These changes have a profound impact on the students' future earnings because there are substantial income differences between specialties. In 1997, for example, the mean income ranged from...

I develop a matching model with statistical discrimination and intergenerational mobility. Workers make both observable and unobservable investments before entering the market which affect their future productivity. Firms can search for workers based upon observable characteristics, be it...