This paper examines the relative effectiveness of publicly provided 'white collar' professional (university) education versus 'blue collar' vocational training in achieving the government's redistributive goals. Although professional education directly benefits high-skill high-income workers and...

I examine income taxation and education policy when the government cannot observe individual productivity, and there exist conflicting incentives for individuals to understate and overstate their productivity. In this setting I identify four possible equilibria, and discuss the corresponding...