Cover -- World Bank Financing of Education -- Contents -- Tables -- Preface to the first edition -- The World Bank and education -- Researching the World Bank -- Preface to the second edition -- Acknowledgments -- Notes on text -- Abbreviations -- 1 The Bank at work -- Bank purposes, structure,...

Assuming a two-period model with endogenous choices of labour, education, and saving, it is shown to be second-best efficient to deviate from Ramsey's Rule and to distort qualified labour less than nonqualified labour. The result holds for arbitrary utility and learning functions. Efficient...