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Student Loans and the Allocation of Graduate Jobs

Author

Listed:
  • Alessandro Cigno

    (University of Florence, Italy; CESifo, Germany; CHILD, Italy)

  • Annalisa Luporini

    (University of Florence, Italy; CESifo, Germany; CHILD, Italy)

Abstract

In an economy where graduate jobs are allocated by tournament, and some of the potential participants cannot borrow against their expected future earnings, the government can increase efficiency and ex ante equity by redistributing wealth or, if that is not possible, by borrowing wholesale and lending to potential participants. Both policies replace some of the less able rich with some of the more able poor and bring education investments closer to their first-best levels.

Suggested Citation

  • Alessandro Cigno & Annalisa Luporini, 2013. "Student Loans and the Allocation of Graduate Jobs," Working Paper series 38_13, Rimini Centre for Economic Analysis.
  • Handle: RePEc:rim:rimwps:38_13
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    References listed on IDEAS

    as
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    Cited by:

    1. Masao Nakagawa & Asuka Oura & Yoshiaki Sugimoto, 2022. "Under- and over-investment in education: the role of locked-in fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 755-784, April.

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    More about this item

    Keywords

    higher education; matching tournaments; credit;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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