This paper presents a screening model of education in which students having private information about their innate abilities are noisily tested in school. The aim is to explore the effect of noise on the screening equilibrium. By assuming that labour contracts take the form of reward schedules...

This paper studies the effects of incentive mechanisms and of the competitive environment on the interaction between schools and students, in a set-up where the students' educational attainment depends on their peer group, on their effort, and on the quality of the school's teaching. We show...