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Enrollment in higher education, ability and growth

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  • von Greiff, Camilo

    () (Dept. of Economics, Stockholm University)

Abstract

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.

Suggested Citation

  • von Greiff, Camilo, 2007. "Enrollment in higher education, ability and growth," Research Papers in Economics 2007:10, Stockholm University, Department of Economics.
  • Handle: RePEc:hhs:sunrpe:2007_0010
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    References listed on IDEAS

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    1. Bevia, Carmen & Iturbe-Ormaetxe, Inigo, 2002. " Redistribution and Subsidies for Higher Education," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(2), pages 321-340, June.
    2. Robert Dur & Coen Teulings, 2003. "Are Education Subsides an Efficient Redistributive Device?," CEE Discussion Papers 0030, Centre for the Economics of Education, LSE.
    3. Creedy, John & Francois, Patrick, 1990. "Financing higher education and majority voting," Journal of Public Economics, Elsevier, vol. 43(2), pages 181-200, November.
    4. Oded Galor & Omer Moav, 2000. "Ability-Biased Technological Transition, Wage Inequality, and Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 469-497.
    5. Jerik Hanushek & Dennis Kimko, 2006. "Schooling, Labor-force Quality, and the Growth of Nations," Educational Studies, Higher School of Economics, issue 1, pages 154-193.
    6. Theodore W. Schultz, 1960. "Capital Formation by Education," Journal of Political Economy, University of Chicago Press, vol. 68, pages 571-571.
    7. 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.
    8. Fershtman, Chaim & Murphy, Kevin M & Weiss, Yoram, 1996. "Social Status, Education, and Growth," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 108-132, February.
    9. Gemmell, Norman, 1996. "Evaluating the Impacts of Human Capital Stocks and Accumulation on Economic Growth: Some New Evidence," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 9-28, February.
    10. 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, .
    11. Johnson, George E, 1984. "Subsidies for Higher Education," Journal of Labor Economics, University of Chicago Press, vol. 2(3), pages 303-318, July.
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    More about this item

    Keywords

    Higher education; Growth;

    JEL classification:

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

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