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 for the existence of gender discrimination in the labour market focusing on the intergenerational transmission of preferences related to the attitude of women towards jobs and family. Changes in women's preferences over generations depend on the socialization...