We present a model where the interaction between competition at school, industrial structure and labour market outcomes is characterised by the concept of Nash decentralised equilibrium. We show that the presence of spillovers and strategic complementarities could generate multiple equilibria....

This paper studies how schooling admission tests affect economic performance in an economy where individuals are endowed with both academic and non academic abilities and both abilities matter for labour productivity. We develop a simple model with selective government held schools, where...

We show that, when school quality is measured by the educational standard and attaining the standard requires costly effort, secondary education needs not be a hierarchy with private schools offering better quality than public schools, as in Epple and Romano, 1998. An alternative configuration,...

This paper studies how schooling admission tests affect economic performance in an economy where individuals are endowed with both academic and non academic abilities and both abilities matter for labor productivity. We develop a simple model with selective government held schools, where...