Enrollment in higher education, ability and growth
This 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.
|Date of creation:||26 Jun 2007|
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- Bevia, Carmen & Iturbe-Ormaetxe, Inigo, 2002.
" Redistribution and Subsidies for Higher Education,"
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- Iñigo Iturbe Ormaetxe & Carmen Beviá, 2000. "Redistribution And Subsidies For Higher Education," Working Papers. Serie AD 2000-15, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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- Haupt, Alexander, 2012. "The evolution of public spending on higher education in a democracy," European Journal of Political Economy, Elsevier, vol. 28(4), pages 557-573.
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- Norman Gemmell,, "undated". "Evaluating the Impacts of Human Capital Stocks and Accumulation on Economic Growth: Some New Evidence," Discussion Papers 95/17, University of Nottingham, CREDIT.
- Bowles, Samuel, 1972. "Schooling and Inequality from Generation to Generation," Journal of Political Economy, University of Chicago Press, vol. 80(3), pages 219-251, Part II, .
- Johnson, George E, 1984. "Subsidies for Higher Education," Journal of Labor Economics, University of Chicago Press, vol. 2(3), pages 303-318, July. Full references (including those not matched with items on IDEAS)
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