externalities (social returns to education) there exists a range of microloan amounts that are growth depressing and welfare … divert investment away from human capital: by failing to internalize the social returns to education, households …

We propose a model of intergenerational transmission of education wherein children belong to either highly educated or … interactions with other low-educated students (i.e., homophily), which reduces the education effort of their parents and, thus … kids from different education backgrounds can be effective in reducing the education gap between them. …