This paper examines the implications of income redistribution on human capital accumulation and income inequality, presenting a model where human capital investment is indivisible and agents differ in economic opportunity as well as intellectual ability. It is shown that the impact of...

The impact of compulsory schooling laws as well as the abolition of early selection by ability remain important issues in the educational debate. These issues were the focus of a major education reform in Sweden which was implemented in the 60s. The reform was preceded by a ``social experiment''...