When are differential treatment policies—such as preferential treatment in school choice, affirmative action in university admissions, and gender equity policies in hiring and promotion within organizations—justified by efficiency concerns? This paper proposes an assignment model of...

This paper investigates the role played by informational frictions in college and the workplace. We estimate a dynamic structural model of schooling and work decisions, where individuals have imperfect information about their schooling ability and labor market productivity. We take into account...

Research on employer learning has provided important insights into the dynamic process that determines individual wages, especially during the early part of a worker's career. However, the recent evidence on the absence of employer learning for college graduates by Arcidiacono et al. (2008) and...