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Earnings Information and Public Preferences for University Tuition: Evidence from Representative Experiments

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  • Philipp Lergetporer
  • Ludger Woessmann

Abstract

Higher education finance depends on the public’s preferences for charging tuition, which may be partly based on beliefs 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. 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

  • Philipp Lergetporer & Ludger Woessmann, 2021. "Earnings Information and Public Preferences for University Tuition: Evidence from Representative Experiments," CESifo Working Paper Series 9102, CESifo.
    • Handle: RePEc:ces:ceswps:_9102
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    2. Freundl Vera & Grewenig Elisabeth & Kugler Franziska & Lergetporer Philipp & Schüler Ruth & Wedel Katharina & Werner Katharina & Wirth Olivia & Woessmann Ludger, 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.
    3. Lergetporer, P & Woessmann, L, 2022. "Income Contingency and the Electorates Support for Tuition," CAGE Online Working Paper Series 606, Competitive Advantage in the Global Economy (CAGE).
    4. Bietenbeck, Jan & Leibing, Andreas & Marcus, Jan & Weinhardt, Felix, 2023. "Tuition fees and educational attainment," European Economic Review, Elsevier, vol. 154(C).

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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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