Secondary schools in the developed world differ in the degree of differentiation and in the first age of selection of pupils into different tracks. In this paper, we account for the heterogeneity of tracking time with a simple stochastic model which conjugates the returns from specialization...

We present a theory explaining the impact of ability tracking on academic performance based on grading policies. Our model distinguishes between initial ability, which is mainly determined by parental background, and eagerness to extend knowledge. We show that achievements of low ability...

The living situation of the elderly population in Europe is gaining importance due to demographic change. In many European countries, women receive substantially lower pensions than men; gender pension gaps among pensioners can be up to 69 percent. When taking elderly people without a pension...