Abstract:JEL Code: C62, D91, J31.Using the education level/wage distribution curve of the Brazilian States we define a dynamic programming problem to determine the optimal choice of education level of the parents in their descendants favor. As a proxy for the opportunity cost of education we use the public expenditure in education. The results show that low level educated workers will use public schools to provide education to their offspring. For high educated workers (which receive higher wages) we find the existence… Show more
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