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Stratification of public universities and students's segretation

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  • Joan Rosselló-Villalonga

    () (Universitat de les Illes Balears)

Abstract

We present a model which allows us to show that strati?cation of public universities according to the quality they o¤er and the quality of students they select is a plausible result even in a public university system where tuition fees are uniform and decided by the administration. This result is similar to that observed in private and competitive university systems. We prove that it is very unlikely that segregation and strati?cation could be avoided by subsidizing those universities that are more ine¢ cient. We show also that even if strati?cation and segregation could be removed with subsidies, it would be at the cost of ?xing quality limits at the whole university system

Suggested Citation

  • Joan Rosselló-Villalonga, 2012. "Stratification of public universities and students's segretation," DEA Working Papers 45, Universitat de les Illes Balears, Departament d'Economía Aplicada.
  • Handle: RePEc:ubi:deawps:45
    as

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    References listed on IDEAS

    as
    1. Fethke, Gary, 2005. "Strategic determination of higher education subsidies and tuitions," Economics of Education Review, Elsevier, vol. 24(5), pages 601-609, October.
    2. Chevalier, Arnaud & Conlon, Gavan, 2003. "Does It Pay to Attend a Prestigious University?," IZA Discussion Papers 848, Institute for the Study of Labor (IZA).
    3. Romero, Laura & Rey, Elena del, 2004. "Competition between public and private universities: quality, prices and exams," UC3M Working papers. Economics we046423, Universidad Carlos III de Madrid. Departamento de Economía.
    4. Iftikhar Hussain & Sandra McNally & Shqiponja Telhaj, 2009. "University Quality and Graduate Wages in the UK," CEE Discussion Papers 0099, Centre for the Economics of Education, LSE.
    5. Caroline M. Hoxby, 2009. "The Changing Selectivity of American Colleges," Journal of Economic Perspectives, American Economic Association, vol. 23(4), pages 95-118, Fall.
    6. Ronald G. Ehrenberg & Daniel R. Sherman, 1984. "Optimal Financial Aid Policies for a Selective University," Journal of Human Resources, University of Wisconsin Press, vol. 19(2), pages 202-230.
    7. Caroline Hoxby, 2000. "Peer Effects in the Classroom: Learning from Gender and Race Variation," NBER Working Papers 7867, National Bureau of Economic Research, Inc.
    8. Holger Sieg & Dennis Epple & Richard Romano, 2003. "Peer effects, financial aid and selection of students into colleges and universities: an empirical analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(5), pages 501-525.
    9. Gordon C. Winston, 1999. "Subsidies, Hierarchy and Peers: The Awkward Economics of Higher Education," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 13-36, Winter.
    10. Andreu Mas-Colell, 2004. "The European Space of Higher Education: Incentive and Governance Issues," 'Angelo Costa' Lectures Serie, SIPI Spa, issue Lect. V.
    11. J. Peter Neary & James A. Mirrlees & Jean Tirole, 2003. "Evaluating Economics Research in Europe: An Introduction," Journal of the European Economic Association, MIT Press, vol. 1(6), pages 1239-1249, December.
    12. Goldin, Claudia & Katz, Lawrence F, 1998. "The Origins of State-Level Differences in the Public Provision of Higher Education: 1890-1940," American Economic Review, American Economic Association, vol. 88(2), pages 303-308, May.
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    More about this item

    Keywords

    school choice; state and federal aid;

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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