@techreport{Eisenkopf2005Abili-11873,
  year={2005},
  series={Diskussionspapiere  der DFG-Forschergruppe Heterogene Arbeit},
  title={Ability grouping and incentives},
  number={05/10},
  author={Eisenkopf, Gerald}
}

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    <dcterms:abstract xml:lang="eng">The paper contributes to the literature on ability grouping in schools by taking student incentives into account. Education provides both a signal on unobservable ability and improves productivity after education. Sorting sets better incentives in primary education and allows for improved peer group effects in secondary education. Comprehensive education induces higher effort for signalling purposes. Under reasonable circumstances, optimal education policy allows for some imperfection in the sorting process. Taking social heterogeneity into account, policy makers can influence the sorting process by changing support in primary or secondary education.</dcterms:abstract>
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