This paper provides a simple explanation for why some minority groups are economically successful, despite being subject to government-mandated discriminatory policies. We study an economy with private and public sectors in which workers invest in imperfectly observable skills that are important...

We study an economy with private and public sectors in which workers invest in imperfectly observable skills that are important to the private sector but not to the public sector. Government regulation allows native majority workers to be employed in the public sector with positive probability...

In many countries the government supports individuals' and companies' donations dedicated to charity organizations or - more general - to public goods. Yet the effects of governmental support with respect to the provision of public goods has been and still is subject to an extensive debate in...