Theory suggests that groups historically subject to discrimination, such as Jews, could exhibit traditionally high … investment in education because discrimination spurred exit facilitated by human capital. Theory moreover suggests that if exit … argue with theory and a range of nonexperimental falsification tests that exit by skilled workers was a necessary causal …

aggregate constraint, redistributing. We find that heterogeneity matters, particularly with redistribution. In the meritocracy …, in the redistribution case, the solution for time devoted to capital accumulation is never interior for both agents … welfare under the redistribution regime is always higher than under meritocracy and it is optimal to exploit existing …

We characterize optimal redistribution in a dynastic family model with human capital. We show how a government can …