Marital sorting along education, income and other salient dimensions is well-documented for many countries. The degree of marital sorting may influence income inequality, intergenerational mobility, and household labor supply, and other economic outcomes. Marital sorting is thought to arise from...

This paper provides a framework for analyzing optimal government transfers of education when individuals are tempted to underinvest in education. The government may devise a transfer using a combination of free compulsory education, vouchers and price subsidies. I show that government...