Social Background Effects on School and Job Opportunities
This paper proposes a theory on how students.social background affects their school attainment and job opportunities. We study a setup where students differ in ability and social background, and we analyse the interaction between a school and an employer. Students with disadvantaged background are penalised compared to other students: they receive less teaching and/or are less likely to be hired. A surprising result is that policy aiming to subsidise education for disadvantaged students might in fact decrease their job opportunities.
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