There is a single firm and a continuum of workers. The firm moves first and sets a wage schedule. The workers move second and choose whether to apply for the job and, if so, how much education to get. There are two levels of education: none and some. Hence the firm in the first stage offers non-negative wages w for the educated and w for the uneducated. You may wish to think of this as a mechanism design problem where the firm designs the mechanism by choosing the wages. The worker has two types, good (or