The aim of this paper is to explain how financial constraints and family background characteristics affect the signalling educational investments of individuals born in low-income families. We show that talented students who are poor are unable to signal their talent, as the maximum level of...

This paper provides an explanation of the evolution and persistence of the gender wage gap due to differences in training within the framework of an overlapping generations model with intergenerational transmission of preferences. "Job-priority" and "family-priority" preferences are considered....