This Paper examines the education literature through the lens of sorting. It argues that how individuals sort across … neighborhoods, schools and households (spouses), can have important consequences for the acquisition of human capital and inequality …. It discusses the implications of different education finance systems for sorting and analyses the efficiency and welfare …

The paper studies the optimal education policy of a budget-constrained utilitarian government. Households differ in … information. Households can choose to use private education, but cannot borrow to finance it. The results we obtain are striking …. The optimal education policy is elitist: it increases the spread between the education achievement of the bright and the …

inequality in education and income more persistent across generations. Whether the same is true of inequality in total wealth …, which provides an integrated framework for analysing the local determinants of inequality and growth. Five main conclusions … emerge. First, minor differences in education technologies, preferences, or wealth, can lead to a high degree of …

account (covering education and training), and a health account (covering insurance against sickness and disability). Unlike …, cushioning people against economic risk, ensuring efficient provision of health and education services, providing social safety …

systems of education finance and health insurance. With imperfect credit and insurance markets some redistributive policies … redistributions decreases with the degree of inequality, at least over some range. Moreover, capital market imperfections make future … high inequality and low redistribution, or vice versa. Temporary shocks to the distribution of income or the political …

This paper studies the effects of progressive income taxes and education finance in a dynamic heterogeneous agent … theoretically and quantitatively, in a model that yields complete analytical solutions. Progressive education finance always leads …

officials' handling of a large education grant program. Combining survey and administrative data, we show that the campaign was …

investment and income, reduce inequality, and increase aggregate welfare relative to the free market outcome. They may also be …