We study the impact on learning of a child's rank in the classroom using a unique experiment from Ecuador. Within each school, students were randomly assigned to classrooms in every grade between kindergarten and 6th grade.Therefore, two students with the same ability can have different...

This paper examines the effect of taxes on the individuals' choices of educational direction, and thus on the economy.s skill composition. A proportional labour tax induces too many workers with high innate ability to choose an educational type associated with high consumption value and low...

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 at- tainments if informal employment opportunities mainly are available to low educated workers....