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Education, Signaling, and Wage Inequality in a Dynamic Economy

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Figure

Figure 1: Educational choices of type l individuals when E[he,seH]< (1+r)e+E[hu,suH] andE[he,se]>(1+r)e+hlu(≥ if se =0) (Lemma 3 (III)(a))
Figure 2: Educational choices of type l individuals when E[he,seH]> (1+r)e+E[hu,suH] andhle <(1+r)e+E[hu,su] (Lemma 3 (III)(c))
Figure 3: Positions of b∗(wjk)=e (j =h,l; k=e,u) (Lemma 6)
Figure 4: Regions of Propositions 1A, 1B, and 1C on the (hhu,hlu) plane
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