-linked externalities (JLEs). JLEs emerge when wages exceed the opportunity cost of labor (labor externalities), or when there are social … gains from creating better jobs for some classes of worker, such as women or youth (social externalities). Like all … externalities, JLEs create a gap between private and social rates of return. Investments can be socially profitable (once the …

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. …

available. In this paper, we use nationally representative cohort data linked to administrative education records to study the …