A sorting-cum-learning model of education

摘要: This paper presents a sorting model of education in which individuals are tested school. By assuming that higher-ability more likely to succeed on given test, one can construct does not hinge the able having lower nonpecuniary costs schooling. Nash equilibria always exist this (even with continuum types individuals); however, some "unreasonable." To eliminate these unreasonable equilibria, restrictive definitions equilibrium proposed. I also show when schooling affects productivity--and therefore worker's probability passing test--a may be characterized by too little investment education.