Enrollment in higher education, ability and growth
AbstractThis paper examines the importance of the ability of high-educated individuals on the growth rate. I consider two sources of heterogeneity among individuals: ability and consumption value of education. The latter is assumed to depend on family background and will thus generate different ability thresholds to enroll in higher education for different family background types. If the effect of high-educated individuals on the growth rate depends on their ability, this will affect the willingness of low-educated individuals to contribute to the funding of higher education. Whether state funded subsidies to higher education benefit some of the low-educated individuals or even are Pareto improving is shown to depend on the switchers’ ability and hence their influence on the growth rate.
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Bibliographic InfoPaper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2007:10.
Length: 25 pages
Date of creation: 26 Jun 2007
Date of revision:
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Higher education; Growth;
Find related papers by JEL classification:
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
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