Any system of primary and secondary schools involves explicit or implicit mechanisms that ration not only financial but also nonfinancial inputs into education production. This chapter focuses primarily on such mechanisms as they relate to the sorting of parents and children into schools and...

This paper studies neighborhood effects using a dynamic general equilibrium model. Households choose where to live and how much to invest in their child's human capital. The return on parents' investment is determined in part by their child's ability and in part by a neighborhood externality. We...

Based on Norwegian administrative registers we provide new empirical evidence on the effects of the childhood neighborhood's socioeconomic status on educational and labor market performance. A neighborhood's status is measured annually by its prime age inhabitants' earnings ranks within larger...

We compare school-to-work transitions of British graduates belonging to ethnic minorities to those of white British. Six months after graduation ethnic minorities are substantially less likely to be employed than white British even after accounting for parental background, local area...