Why are high ability individuals from poor backgrounds under-represented at university?
We analyse data in which individuals from low socio-economic status (SES) backgrounds have lower university participation rates than those from higher SES backgrounds. Our focus is on the role played by credit constraints in explaining these different participation rates. We propose a multi-stage model of education where university participation is contingent on ability to pay and high school academic performance, which depends on family SES and innate student ability. We find no evidence that credit constraints deter high achieving students from attending university in Australia, a country with an income contingent loan scheme for higher education tuition fees. We do, however, find that how students convert their earlier school performance into the scores on which university entrance is based is contingent on their SES. That is, for students of similar ability, those from higher SES backgrounds are more likely to obtain university entrance scores and achieve higher scores if they do. Hence, policy interventions that rectify the credit constraint problem that faces individuals at the time they make university entrance decisions are not sufficient to equalize university participation across social groups.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.latrobe.edu.au/economics|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James Heckman & Pedro Carneiro & Flavio Cunha, 2004.
"The Technology of Skill Formation,"
2004 Meeting Papers
681, Society for Economic Dynamics.
- Barsky R. & Bound J. & Charles K.K. & Lupton J.P., 2002.
"Accounting for the Black-White Wealth Gap: A Nonparametric Approach,"
Journal of the American Statistical Association,
American Statistical Association, vol. 97, pages 663-673, September.
- Robert Barsky & John Bound & Kerwin Charles & Joseph Lupton, 2001. "Accounting for the Black-White Wealth Gap: A Nonparametric Approach," NBER Working Papers 8466, National Bureau of Economic Research, Inc.
- Laporte, Christine & Lascelles, Eric & Finnie, Ross, 2004. "Family Background and Access to Post-secondary Education: What Happened over the 1990s?," Analytical Studies Branch Research Paper Series 2004226e, Statistics Canada, Analytical Studies Branch.
- Carneiro, Pedro & Heckman, James J., 2003.
"Human Capital Policy,"
IZA Discussion Papers
821, Institute for the Study of Labor (IZA).
- Chapman, B., 1996.
"Conceptual Issues and the Australian Experience with Income Contingent Charges for Higher Education,"
CEPR Discussion Papers
350, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Chapman, Bruce, 1997. "Conceptual Issues and the Australian Experience with Income Contingent Charges for Higher Education," Economic Journal, Royal Economic Society, vol. 107(442), pages 738-51, May.
- Anh T. Le & Paul W. Miller, 2005. "Participation in Higher Education: Equity and Access?," The Economic Record, The Economic Society of Australia, vol. 81(253), pages 152-165, 06.
- Lorraine Dearden & Javier Ferri & Costas Meghir, 2000.
"The effect of school quality on educational attainment and wages,"
IFS Working Papers
W00/22, Institute for Fiscal Studies.
- Lorraine Dearden & Javier Ferri & Costas Meghir, 2002. "The Effect Of School Quality On Educational Attainment And Wages," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 1-20, February.
- Lorraine Dearden & Javier Ferri & Costas Meghir, 1998. "The effect of school quality on educational attainment and wages," IFS Working Papers W98/03, Institute for Fiscal Studies.
- Bruce Chapman, 2005.
"Income Contingent Loans for Higher Education: International Reform,"
CEPR Discussion Papers
491, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Chapman, Bruce, 2006. "Income Contingent Loans for Higher Education: International Reforms," Handbook of the Economics of Education, Elsevier.
- Chapman, Bruce & Ryan, Chris, 2005.
"The access implications of income-contingent charges for higher education: lessons from Australia,"
Economics of Education Review,
Elsevier, vol. 24(5), pages 491-512, October.
- Bruce Chapman & Chris Ryan, 2003. "The Access Implications of Income Contingent Charges for Higher Education: Lessons from Australia," CEPR Discussion Papers 463, Centre for Economic Policy Research, Research School of Economics, Australian National University.
When requesting a correction, please mention this item's handle: RePEc:ltr:wpaper:2006.04. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephen Scoglio)The email address of this maintainer does not seem to be valid anymore. Please ask Stephen Scoglio to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.