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The Distribution of Subsidies to Postsecondary Students

Author

Listed:
  • Sandy Baum

    (Skidmore College)

  • Jane Sjogren

    (Simmons College)

Abstract

College students receive both direct subsidies in the form of grants and loans provided by the government and by educational institutions and indirect subsidies in the form of tuition levels which do not cover the full cost of education. This paper examines the distribution of each of these forms of subsidy to students at different income levels who attend public and private colleges and universities. Students in private colleges receive lower indirect subsidies, but significantly higher direct subsidies than do those in public colleges. The distribution of subsidies in the private sector is distinctly pro-poor, but this is not true in the public sector. Other findings include higher subsidies for undergraduates studying at four year colleges than for those in universities and significant saving of public funds on middle and upper-income students studying in private institutions.

Suggested Citation

  • Sandy Baum & Jane Sjogren, 1996. "The Distribution of Subsidies to Postsecondary Students," Eastern Economic Journal, Eastern Economic Association, vol. 22(2), pages 195-204, Spring.
  • Handle: RePEc:eej:eeconj:v:22:y:1996:i:2:p:195-204
    as

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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume22/V22N2P195_204.pdf
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    References listed on IDEAS

    as
    1. Douglas W. McNeil & Andrew W. Foshee & Clark R. Burbee, 1988. "Superfund Taxes and Expenditures: Regional Redistributions," The Review of Regional Studies, Southern Regional Science Association, vol. 18(1), pages 4-9, Winter.
    2. Schwert, G William, 1981. "Using Financial Data to Measure Effects of Regulation," Journal of Law and Economics, University of Chicago Press, vol. 24(1), pages 121-158, April.
    3. Wendy Naysnerski & Tom Tietenberg, 1992. "Private Enforcement of Federal Environmental Law," Land Economics, University of Wisconsin Press, vol. 68(1), pages 28-48.
    4. Maloney, Michael T & McCormick, Robert E, 1982. "A Positive Theory of Environmental Quality Regulation," Journal of Law and Economics, University of Chicago Press, vol. 25(1), pages 99-123, April.
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    Citations

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    Cited by:

    1. Thompson, Fred & Zumeta, William, 2001. "Effects of key state policies on private colleges and universities: sustaining private-sector capacity in the face of the higher education access challenge," Economics of Education Review, Elsevier, vol. 20(6), pages 517-531, December.

    More about this item

    Keywords

    Education; Tuition;

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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