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College Expansion and Curriculum Choice

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Abstract

This paper analyzes the impact of college enrollment expansion on student academic achievements and labor market outcomes. When public policies promote “access” to college education, colleges adjust their curricula: Non-elite public colleges adopt a less demanding curriculum to accommodate the influx of low-ability students, benefiting them at the expense of middle-ability students. In response to the reduced competitive pressure for middle-ability students, private colleges adopt a more demanding curriculum to better serve their high-ability students, again at the expense of middle-ability students. The model offers an explanation to the observed U-shaped earnings growth profile among college-educated workers in the U.S.

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File URL: https://sites.ualberta.ca/~econwps/2012/wp2012-25.pdf
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Paper provided by University of Alberta, Department of Economics in its series Working Papers with number 2012-25.

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Length: 29 pages
Date of creation: 01 Oct 2012
Date of revision: 01 Apr 2015
Handle: RePEc:ris:albaec:2012_025
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Keywords: curriculum; postsecondary education; enrollment expansion; income distribution;

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Find related papers by JEL classification:
  • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
  • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
  • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
  • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
  • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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  1. Blankenau, William, 2005. "Public schooling, college subsidies and growth," Journal of Economic Dynamics and Control, Elsevier, vol. 29(3), pages 487-507, March.
  2. Driskill, Robert A & Horowitz, Andrew W, 2002. "Investment in Hierarchical Human Capital," Review of Development Economics, Wiley Blackwell, vol. 6(1), pages 48-58, February.
  3. David Card & Thomas Lemieux, 2000. "Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis," NBER Working Papers 7655, National Bureau of Economic Research, Inc.
  4. Dennis Epple & Richard Romano, 2008. "Educational Vouchers And Cream Skimming," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1395-1435, November.
  5. Lance Lochner & Youngki Shin, 2014. "Understanding Earnings Dynamics: Identifying and Estimating the Changing Roles of Unobserved Ability, Permanent and Transitory Shocks," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20142, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
  6. Avner Shaked & John Sutton, 1982. "Relaxing Price Competition Through Product Differentiation," Review of Economic Studies, Oxford University Press, vol. 49(1), pages 3-13.
  7. Acemoglu, Daron & Zilibotti, Fabrizio, 2000. "Productivity Differences," CEPR Discussion Papers 2498, C.E.P.R. Discussion Papers.
  8. Gerald Eisenkopf & Ansgar Wohlschlegel, 2011. "Regulation in the Market for Education and Optimal Choice of Curriculum," TWI Research Paper Series 64, Thurgauer Wirtschaftsinstitut, Universit�t Konstanz.
  9. Costrell, Robert M, 1994. "A Simple Model of Educational Standards," American Economic Review, American Economic Association, vol. 84(4), pages 956-71, September.
  10. DEL REY, Elena, 2000. "Teaching versus research: a model of state university competition," CORE Discussion Papers 2000030, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  11. Epple, Dennis & Newlon, Elizabeth & Romano, Richard, 2002. "Ability tracking, school competition, and the distribution of educational benefits," Journal of Public Economics, Elsevier, vol. 83(1), pages 1-48, January.
  12. Dennis Epple & David Figlio & Richard Romano, 2000. "Competition Between Private and Public Schools: Testing Stratification and Pricing Predictions," NBER Working Papers 7956, National Bureau of Economic Research, Inc.
  13. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
  14. Dennis Epple & Richard Romano & Holger Sieg, . "Admission, Tuition, and Financial Aid Policies in the Market for Higher Education," GSIA Working Papers 2003-04, Carnegie Mellon University, Tepper School of Business.
  15. Elise S. Brezis & Joël Hellier, 2013. "Social Mobility at the Top: Why Are Elites Self-Reproducing?," Working Papers 2013-12, Bar-Ilan University, Department of Economics.
  16. Oded Galor & Omer Moav, 1998. "Ability Biased Technological Transition, Wage Inequality, and Economic Growth," Working Papers 98-14, Brown University, Department of Economics.
  17. Su, Xuejuan, 2006. "Endogenous determination of public budget allocation across education stages," Journal of Development Economics, Elsevier, vol. 81(2), pages 438-456, December.
  18. William Blankenau & Steven Cassou & Beth Ingram, 2007. "Allocating Government Education Expenditures Across K-12 and College Education," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 31(1), pages 85-112, April.
  19. Su, Xuejuan, 2004. "The allocation of public funds in a hierarchical educational system," Journal of Economic Dynamics and Control, Elsevier, vol. 28(12), pages 2485-2510, December.
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Cited by:

  1. Volker Meier & Ioana Cosmina Schiopu, 2015. "Why Academic Quality in Higher Education Declines," CESifo Working Paper Series 5480, CESifo Group Munich.
  2. Elise S. Brezis & Joël Hellier, 2013. "Social Mobility at the Top: Why Are Elites Self-Reproducing?," Working Papers 2013-12, Bar-Ilan University, Department of Economics.

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