This paper shows that the design of education policy involves a potential conflict between welfare and social mobility … welfare maximization calls for the most elitist system. We show that when private education is available, the degree of … elitism that maximizes social mobility increases, while the welfare-maximizing degree of elitism decreases. The ranking …

self" emerges when labor supply and savings decisions are made. The social welfare function is paternalistic: the rate of … myopic increases, the desirability of social security (measured by the difference between social welfare with and without …