This paper studies a model where student effort and talent interact with parental and teachers' investments, as well as with school system resources. The model is rich, yet sufficiently stylized to provide novel implications. It can show, for example, that an improvement in parental outside...

We study whether a woman's labor supply as a young adult is shaped by the work behavior of her adolescent peers' mothers. Using detailed information on a sample of U.S. teenagers who are followed over time, we find that labor force participation of high school peers' mothers affects adult...