in which individuals' human capital stock depends positively on their education and parental human capital and in which … complementarity between parental human capital and education in determining individuals' human capital is relatively large, then …

secondary education. To that end, I present a model in which investment in education is indivisible. Thus, if demand exceeds … supply at any level of education, allocation is carried out--at least in part--via test scores. The model highlights how the … effectiveness of educational standards in altering student performance depends on the college and secondary school education premia …

We present a public higher education model in which there exist indivisibilities in educational investment …. Consequently, when demand for educational services exceed supply, a screening mechanism, which may potentially be imperfect, is … devoted to public higher education. Moderate degrees of admission bias lower the share of resources devoted to public …

We present a model of public higher education finance in which demand for educational services can exceed supply … because of direct or indirect discrimination--is required for allocation. We show how changes in the education premium affect … political support for affirmative action policies. When the education premium is relatively low, the matching efficiency gains …