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Academic Admissions Standards: Implications For Output, Distribution, And Mobility

Author

Listed:
  • Yaakov Gilboa

    (Sapir College)

  • Moshe Justman

    (Ben-Gurion University)

Abstract

We examine the trade-offs implicit in academic admissions standards when students are charged cost-based tuition and offered loans that remove liquidity constraints. Lowering entry requirements while holding graduation requirements fixed increases aggregate output and promotes a more equal distribution of wages, but reduces relative income mobility and diminishes the scope for affirmative action. Lowering admissions standards while raising graduation requirements, so that the number of graduates remains constant, has little direct effect on output, distribution, or mobility, but again reduces the scope for affirmative action. Income-based affirmative action offers a better trade-off between output and relative mobility than income-neutral admissions. (JEL: D31, H42, I23, I28, J24) Copyright (c) 2005 by the European Economic Association.

Suggested Citation

  • Yaakov Gilboa & Moshe Justman, 2005. "Academic Admissions Standards: Implications For Output, Distribution, And Mobility," Journal of the European Economic Association, MIT Press, vol. 3(5), pages 1105-1133, September.
  • Handle: RePEc:tpr:jeurec:v:3:y:2005:i:5:p:1105-1133
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    Citations

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    Cited by:

    1. De Fraja, Gianni & Valbonesi, Paola, 2012. "The design of the university system," Journal of Public Economics, Elsevier, vol. 96(3), pages 317-330.
    2. Hellier, Joël, 2017. "Stratified higher education,social mobility at the top and efficiency: The case of the French ‘Grandes écoles’," MPRA Paper 76724, University Library of Munich, Germany.
    3. Elise S. Brezis & Joël Hellier, 2017. "Social Mobility at the Top and the Higher Education System," Working Papers 2017-04, Bar-Ilan University, Department of Economics.
    4. Elisa S. Brezis & Joel Hellier, 2016. "Social Mobility and Higher-Education Policy," Working Papers 095, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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