education. Public education is favourable for growth because it increases the level of human capital and at the same time it … more political support for education; increased political rights are good for growth and also imply a more equal income …

We consider a continuum of workers ranked according to their ability to acquire education, and two firms with different … technologies that compete imperfectly in wages to attract these workers. Once employed, each worker bears an education cost … education cost or wages and compare them. We found that the first best allocation can only be implemented by selective policies …