We study the link between education and wealth inequality through the channel of financial investment decisions. We present a simple model of individuals with heterogeneous ability in evaluating investment opportunities. We show that a welfare maximizing policy-maker can reduce inequality by...

We study the link between education and wealth inequality through the channel of financial investment decisions. We present a simple two-period model of individuals endowed with equal wealth and heterogeneous ability in evaluating investment opportunities. Then, the heterogeneous allocation of...