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Earnings information and public preferences for university tuition: Evidence from representative experiments

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  • Lergetporer, Philipp
  • Woessmann, Ludger

Abstract

Higher education finance depends on the public’s preferences for charging tuition, which may be partly based on beliefs and awareness about the university earnings premium. To test whether public support for tuition depends on earnings information, we devise survey experiments in representative samples of the German electorate (N > 15,000). The electorate is divided, with a plurality opposing tuition. Providing information on the university earnings premium raises support for tuition by 7 percentage points, turning the plurality in favor. The opposition-reducing effect persists two weeks after treatment. While there is some evidence of information-based updating of biased beliefs, the effect seems to mainly work through increased salience which triggers reduced consideration of financial constraints when forming preferences for tuition. Information on fiscal costs and unequal access does not affect public preferences. We subject the baseline result to various experimental tests of replicability, robustness, heterogeneity, and consequentiality.

Suggested Citation

  • Lergetporer, Philipp & Woessmann, Ludger, 2023. "Earnings information and public preferences for university tuition: Evidence from representative experiments," Journal of Public Economics, Elsevier, vol. 226(C).
  • Handle: RePEc:eee:pubeco:v:226:y:2023:i:c:s0047272723001500
    DOI: 10.1016/j.jpubeco.2023.104968
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    Cited by:

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    2. Lergetporer, Philipp & Wößmann, Ludger, 2022. "Income Contingency and the Electorate's Support for Tuition," VfS Annual Conference 2022 (Basel): Big Data in Economics 264003, Verein für Socialpolitik / German Economic Association.
    3. Bietenbeck, Jan & Leibing, Andreas & Marcus, Jan & Weinhardt, Felix, 2023. "Tuition fees and educational attainment," European Economic Review, Elsevier, vol. 154(C).
    4. Freundl Vera & Kugler Franziska & Wedel Katharina & Werner Katharina & Woessmann Ludger & Grewenig Elisabeth & Lergetporer Philipp & Schüler Ruth & Wirth Olivia, 2023. "The ifo Education Survey 2014–2021: A New Dataset on Public Preferences for Education Policy in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 243(6), pages 699-710, December.

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    More about this item

    Keywords

    Tuition; Higher education; Information; Earnings premium; Public opinion; Voting;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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