%0 Report
        %A Atal, Vidya
%A Basu, Kaushik
%A Gray, John
%A Lee, Travis
        %T Literacy Traps: Society-wide Education and Individual Skill Premia
        %D 2009
        %8 2009 Feb
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 4047
        %U https://www.iza.org/index.php/publications/dp4047
        %X Using a model of O-ring production function, the paper demonstrates how certain communities can get caught in a low-literacy trap in which each individual finds it not worthwhile investing in higher skills because others are not high-skilled. The model sheds light on educational policy. It is shown that policy for promoting human capital has to take the form of a mechanism for solving the coordination failure in people’s choice of educational strategy.
        %K O-ring
%K literacy
%K education
%K skill formation
%K traps