We estimate the effect of education on lifetime income in Europe, by distinguishing between individuals who lived in rural or urban areas during childhood and between individuals who had access to many or few books at age ten. We instrument years of education using reforms of compulsory...

In this paper we estimate the effect of education on lifetime earnings in Europe, by distinguishing between individuals who lived in rural or urban areas during childhood and between individuals who had access to many or few books at age ten. We instrument years of education using reforms of...

We develop a model of education where individuals face educational risk. Successfully entering the skilled labor sector depends on individual effort in education and public resources, but educational risk still causes (income) inequality. We show that an optimal public policy consists of...

Decisions about admission to selective schools usually rely on performance measures. To reach a required achievement threshold students may make use of additional resources, such as private tutoring. We investigate how the use of private tutoring relates to the transition probability to an...

Decisions about admission to selective schools usually rely on performance measures. To reach a required achievement threshold students may make use of additional resources, such as private tutoring. We investigate how the use of private tutoring relates to the transition probability to an...

We model schooling as a sequential process and examine why some children are left behind. We focus on the factors that explain selection at early stages of the education system. Our findings for Uruguay suggest that long-term factors, such as parental background or ethnicity matter across all...