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Abstract
The paper offers a united way to examine several puzzles on in- equality dynamics. It focuses on differences in the education tech- nology and their effects on income distributions. Our overlapping generations economy has the following features: (1) consumers are heterogenous with respect to ability and parental human capital; (2) intergenerational transfers take place via parental direct investment in education and, public education enhanced by taxes (possibly, with a level determined by majority voting). We explore several varia- tions in the production of human capital, some attributed to 'home- education' and others related to 'public-education', and indicate how various changes in education technologies affect the intragenerational income inequality along the equilibrium path.