Sorting, Education and Inequality
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 analyzes the efficiency and welfare properties of these in static and dynamic frameworks.
Published: Dewatripont, Hansen, and Turnovsky (eds.) Advances in Economics and Econometrics. Cambridge University Press, 2003.