SBTC is a powerful mechanism in explaining the increasing gap between educated and uneducated wages. However, SBTC cannot mimic the US within-group wage inequality. This paper provides an explanation for the observed intra-college group inequality by showing that the top decile earners’ significant wage growth is underpinned by the link between ex ante ability, math-heavy college majors and hig...

Noncognitive Abilities and Within-Group Wage Inequality This paper argues that endogenous restructuring processes within firms towards productivityenhancing human resource activities, triggered by advances in information and communication technologies (ICT) and rising supply of educated workers, are typically associated with higher demand for noncognitive abilities. Consistent with the evolutio...

Realizing the importance of education in developing a country, many governments had begun to pay more attention in improving the education quality in their country. However whether the desired level of education quality is equally distributed is still debated on. On top of that, current literature on which level of education, either basic or tertiary education, brings greater return to the soci...

We study differential fertility and intergenerational mobility in an overlapping-generations framework with skilled and unskilled individuals. Assuming unskilled parents are less productive in educating children, we show that they choose higher fertility but less investment for child education than skilled parents. Public education reduces the fertility gap but may increase intergenerational mo...

This paper investigates the general equilibrium consequences of assuming that the time it takes an individual to obtain a skill depends on the average level of education in the neighborhood of his/her birth. These neighborhood e ects provide an incentive for the high educated to break-o and form an exclusive neighborhood. Economic segregation is implemented by a zoning requirement which speci e...

We present a dynamic OLG model of educational signaling and inequality with missing credit markets. Agents are characterized by two sources of unobserved heterogeneity: ability and parental income, consistent with empirical evidence on returns to schooling. Both quantity and quality of human capital evolve endogenously. The model generates a Kuznets inverted-U pattern in skill premia similar to...

Emancipation has lost its charisma. In the 1960s, the term had been one of the saviour-concepts in the educational debate on social inequality and the political function of pedagogy in Western countries. Nowadays, as the discussion is still ongoing, the word is rarely in use. Overloaded with political enmeshments and a plurality of meanings, emancipation seems to be nothing more than a nearly f...

Introduction: Previous research and motivations Research on intergenerational social mobility as well as on returns to education has long traditions in Hungary. Already in the communist times, large-scale data collections with observations of ten-thousands of cases, aiming to study these topics have been carried out in the Hungarian Central Statistical Office. The first one for which the micro ...