The great majority of studies on the effect of school quality on academic outcomes do not take account of changes in student choices concerning effort if school quality, e.g. class size, changes. We show that empirical estimates of the "total" effect of changes in school quality could be quite...

This paper develops a four-sector equilibrium search and matching model with informal sector employment opportunities and educational choice. We show that underground activities reduce educational attainments if informal employment opportunities mainly are available for low-educated workers. A...

This paper examines how banning affirmative action in university admissions affects both overall academic achievement and the racial gap in academic achievement prior to college entry. Focusing on college-bound high school students, we use a difference-in-difference methodology to analyze the...