selection. Building on their framework we demonstrate that externalities between agents - an agent's utility upon accepting a … when the size of the externalities is arbitrarily small. Our result highlights the degree of control a principal has over …

dropping out of upper-secondary education. Further, for students who finish education we show that one month before termination …-making about human capital acquisition and labor market transition with important implications for education and labor market …

We propose a model of intergenerational transmission of education wherein children belong to either highly educated or … interactions with other low-educated students (i.e., homophily), which reduces the education effort of their parents and, thus … kids from different education backgrounds can be effective in reducing the education gap between them. …