This paper considers education investment and public education subsidies in closed and open economies with an … extortionary government. The extortionary government in a closed economy has incentives to subsidize education in order to overcome … their education policies if highly productive labor is fully mobile. Extortionary governments' incentives for education …

by the reform significantly increased their education and experienced higher labor income. Our main result is that the …. These results are not driven by the direct impact of education and are not explained by higher turnout, or greater attention …