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How income contingent loans could affect the returns to higher education: a microsimulation of the French case

Author

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  • Pierre Courtioux

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

We assess the implementation of income contingent loan (ICL) schemes for higher education in a context characterized by two main features: a formerly tuition-free system and a great heterogeneity in the quality and cost of higher education. In that case, ICL implementation leads to a trade-off between increasing "career" equity in terms of collective public spending versus individual gains and widening low education traps by reducing the incentives to pursue higher education. We rely on a dynamic microsimulation model to evaluate the degree to which low education traps are enlarged by the implementation of ICLs in France. We conclude that the risk of such traps getting larger is very low

Suggested Citation

  • Pierre Courtioux, 2012. "How income contingent loans could affect the returns to higher education: a microsimulation of the French case," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00718386, HAL.
    • Handle: RePEc:hal:cesptp:hal-00718386
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    Cited by:

    1. Pierre Courtioux & Stéphane Gregoir & Dede Houeto, 2009. "The Simulation of the Educational Output over the Life Course: The GAMEO Model," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00391393, HAL.
    2. Courtioux, Pierre & Gregoir, Stéphane & Houeto, Dede, 2014. "Modelling the distribution of returns on higher education: A microsimulation approach," Economic Modelling, Elsevier, vol. 38(C), pages 328-340.

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    Keywords

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    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods

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