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Table 2: Optimal Education Policies and Patterns of Trade

1	b = .4	p^A = .8	¹¹A = .8, C = 0, θA = .2 b b	W ^a = 0.89
la*	b = .4	p* = 1	θf = .8, ∣∣A = 0, ∣Q = .2 b b 1i b	W^x = 0.9
la	b = .4	p^, = 1	θɪ = .6, ^x = .4, θ^y_h = 0	W^γ = 0.74
lb*	b = .4	p* = .7	'' = .8, '■ = 0, '^x = .2	W^x = 0.90
lb	b = .4	p* = .7	θh = .6, θh_n = .4, θ^y = 0	W^γ = 0.88
lc	b = .4	p* = .5	'' = .8, θb = 0, '^x = .2	W^x = 0.92
1c*	b = .4	p* = .5	θh = .6, θb = .4, θh = 0	W^γ = 1.05
2	b = 1	p^A = .68	θA = .32, θA = .36, θA = .32 b b ! I b ^jIb	W ^a = 1.33
2a*	b = 1	p* = .8	'' = .5, θb = 0, Θ^a = .5	W^x = 1.40
2a	b = 1	p* = .8	θ^y = 0, θ^y_m = 1, θh = 0	W^γ = 1.23
2b	b = 1	p* = .4	- = .5, θb = 0, Θ^a = .5	W^x = 1.18
~b*Γ	b = 1	p* = .4	C = 0, θ^γ_m = 1, θ^γ = 0	W^γ = 1.74
3	b = 1.45	p^A = .54	θA = 0, θA = .55, θA = .45 b I	W ^a = 1.66
3a*	b = 1.45	p* = 1	θ? = .275, θ^γ = 0, θ? = .725 b I 11 b b I b	W^x = 1.95
3a	b = 1.45	p* = 1	θh = 0, θh, = .55, 0h = .45 b b	W^γ = 1.73
3b	b = 1.45	p* = .60	'"' = .275, θb = 0, θ^x = .725	W^x = 1.58
3b*	b = 1.45	p* = .60	θ^γ = 0, 'b = 1, θ^γ = 0	W^γ = 1.71
3c	b = 1.45	p* = .45	'' = .275, '■ = 0, '^x = .725	W^x = 1.42
3c*	b = 1.45	p* = .45	θ^γ = 0, ʃ = 1, θ^γ = 0	W^γ = 1.97~

26

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