also provides a novel microfoundation for peer effects, with empirical implications for welfare and different education …

We propose a model of intergenerational transmission of education wherein children belong to either highly educated or … interactions with other low-educated students (i.e., homophily), which reduces the education effort of their parents and, thus … kids from different education backgrounds can be effective in reducing the education gap between them. …

We examine the competition in shadow education inputs among students' parents under a social interaction framework by … reflection problem. Moreover, the competition effect is higher of the more observable outcome for agents in the same reference …

effect cannot be identified without any exclusion restrictions. We then study the impact of peer effects on education and …

education in schools and universities to noninstitutional forms of learning such as home study. The dynamic effects of shifts in … education policy as well as their welfare implications are also calculated in the paper. …

ability, and the choice of education is determined endogenously. Job opportunities in an informal sector are available only to … workers who choose not to acquire higher education. We find that increased punishment of informal activities increases the …