Compulsory education
In the article the authors use an OLG model with productive capital and human capital affecting the quality of labor. Every generation parents invest in the education of their children ignore its external influence on the aggregate production function. Government intervention in providing Compulsory education increases economic growth, while the intergenerational income distribution becomes more equal. in addition, in the long term, most of the individuals in every generation are better off due to compulsory education.