---- Acknowledgments ----
We are grateful to Alvaro Calderon, Chris Becker, Giacomo De Giorgi, Jaime Arellano-Bover, Nicky Irvine Halterman and Tom Zohar for most useful comments. We thank the Central Bureau of Statistics in Israel and Avi Simchon for allowing restricted access to the data used in this study. We benefited from comments from participants at Stanford, Tel Aviv University, Pontificia Universidad Catolica de Chile, Hebrew University, University of Geneve, and the Lisbon conference on economics of education, January 2019. Lavy acknowledges financial support from the European Research Council through ERC Advance Grant 323439. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.