Explore the vast range of titles available.

This paper studies the impact of an increase in higher education tuition on intergenerational mobility in China. We develop a theoretical model for the parental decision about the investment on education of children to illustrate the impact from the perspective of borrowing constraint. We consider the Chinese college tuition and subsidy reform around 1986 as a quasi-natural experiment for identifying the policy effect of the reform on intergenerational educational mobility by using the data from the census of 2000 and the China Family Panel Studies (CFPS). We find that an increase in the education burden induced by the reform of college tuition has reduced intergenerational educational mobility, and it is more noticeable in regions with a relatively higher increment in the tuition fee. Our results are robust with consideration of the co-residence bias, government investment in elementary education, and the higher education expansion.

This paper summarizes the experiences to date of the new EU countries (the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia—the EU8) in the reform of higher education systems in a period of growing demand; changing patterns of access; rapid expansion and increased participation rates; and an apparent dilution of average quality. The study discusses the growing experience with a variety of financing mechanisms in EU8 countries, drawing on detailed country case studies, and seeks to develop some useful lessons from experience, mindful that each country will continue to develop its own solution based on national priorities.

We analyze a Massachusetts merit aid program that gives highscoring students tuition waivers at in-state public colleges with lower graduation rates than available alternative colleges. A regression discontinuity design comparing students just above and below the eligibility threshold finds that students are remarkably willing to forgo college quality and that scholarship use actually lowered college completion rates. These results suggest that college quality affects college completion rates. The theoretical prediction that inkind subsidies of public institutions can reduce consumption of the subsidized good is shown to be empirically important.

Over the past few decades, the average college has not become more selective: the reverse is true, though not dramatically. People who believe that college selectivity is increasing may be extrapolating from the experience of a small number of colleges such as members of the Ivy League, Stanford, Duke, and so on. These colleges have experienced rising selectivity, but their experience turns out to be the exception rather than the rule. Only the top 10 percent of colleges are substantially more selective now than they were in 1962. Moreover, at least 50 percent of colleges are substantially less selective now than they were in 1962. To understand changing selectivity, we must focus on how the market for college education has re-sorted students among schools as the costs of distance and information have fallen. In the past, students' choices were very sensitive to the distance of a college from their home, but today, students, especially high-aptitude students, are far more sensitive to a college's resources and student body. It is the consequent re-sorting of students among colleges that has, at once, caused selectivity to rise in a small number of colleges while simultaneously causing it to fall in other colleges. This has had profound implications for colleges' resources, tuition, and subsidies for students. I demonstrate that the stakes associated with choosing a college are greater today than they were four decades ago because very selective colleges are offering very large per-student resources and per-student subsidies, enabling admitted students to make massive human capital investments.

We assess the COVID-19 pandemic’s implications for state government sales and income tax revenues. We estimate that the economic declines implied by recent forecasts from the Congressional Budget Office will lead to a shortfall of roughly $106 billion in states’ sales and income tax revenues for the third quarter of 2020 through the second quarter of 2021 (the 2021 fiscal year for most states). This is equivalent to 0.5 percent of gross domestic product and 11.5 percent of our pre-COVID sales and income tax projection. Additional tax shortfalls from the second quarter of 2020 (the final quarter of most states’ 2020 fiscal years) may amount to roughly $42 billion. We discuss how these revenue declines fit into several pieces of the broader economic context. These include other revenues (e.g., university tuition and fees) that are also at risk, as well as spending needs necessitated by the public health crisis itself. Further dimensions of context involve fiscal support enacted through several pieces of federal legislation.

Purpose:This study investigates the phenomenon of moral hazard among the student population, specifically in the context of financial subsidies and other financing support schemes that they receive while pursuing higher education. The emphasis is on the dynamics of the financier-student relationship and the emergence of the moral hazard. The main purpose of this study is to identify and understand the factors that contribute to the occurrence of moral hazard among students, considering the financial support they receive from government subsidies and parental contributions.Design/methodology/approach:For the purpose of this study, the authors conducted a survey among business and administration students at the University of Rijeka to investigate the presence of moral hazard and its influencing factors. In order to investigate and to analyze the emergence of moral hazard and the impact of its influencing factors, the Structural Equation Modelling-Partial Least Square (SEM-PLS) method was used.Findings:This study aims to fill a research gap on the existence of moral hazard in higher education financing and explore the factors that contribute to its emergence. The results of explanatory analyses suggest that financial asymmetry and financial attitudes negatively impact the occurrence of the moral hazard, while financial behaviors were not statistically significant. Additionally, the results show that various contextual, economic, and behavioral factors influence moral hazard.Research limitations/implications: The limited explanatory power of the findings highlights a key limitation, underscoring the inherent complexity and multifaceted nature of the moral hazard construct. Besides this limitation, the authors surveyed only economics and business administration students; excluding students from other fields could have impacted the results of the analysis and could have led to different results for the overall student population.Originality.There are only a few studies on the occurrence of moral hazard in higher education financing in European countries. The welfare state and the subsidization of higher education and supporting schemes for the student expenses are deeply ingrainedThe majority of European countries have a societal consciousness that rarely questions the occurrence of undesirable phenomena like moral hazard. To the best of our knowledge, this study represents the first attempt to explore the occurrence of moral hazard in financing higher education with the PLS-SEM methodology while also developing constructs that influence the occurrence of moral hazard.Keywords:Moral Hazard, Tuitions Fees, Financing Higher Education, Croatia, Students, PLS-SEMJEL Classification: H75, I22, J24

There is increasing evidence that tax benefits for college do not affect college enrollment. This may be because prospective students do not know about tax benefits for college or because the design of tax benefits is not conducive to affecting educational outcomes. We focus on changing awareness of tax benefits by providing information to students or prospective students. We sent e-mails and letters to students that described tax benefits for college, and we tracked college outcomes. For all three of our samples—rising high school seniors, already enrolled students, and students who had previously applied to college but were not currently enrolled—information about tax benefits for college did not affect enrollment or reenrollment. We test whether effects vary according to information frames and found that no treatment arms changed student outcomes. We conclude that awareness is not the primary reason that tax benefits for college do not affect enrollment.

A new push for accountability has become an increasingly important feature of education policy in the United States and throughout the world. Broadly speaking, accountability seeks to hold educational institutions responsible for student outcome using tools ranging from performance “report cards” to explicit rewards and sanctions. We survey the well-developed empirical literature on accountability in K–12 education and consider what lessons we can learn for the design and impact of college ratings. Our bottom line is that accountability works, but rarely as well as one would hope, and often not entirely in the ways that were intended. Research on K–12 accountability offers some hope but also a number of cautionary tales.

A bill was soon introduced in the New Jersey Legislature that would have required approval from the local school board to open a new charter school in the state. [...]in the greatest subsidy available, your housing value will appreciate as a function of this exclusivity. While some residents of affluent districts may still opt for private school, the relationship between housing value and school exclusivity remains a crucial factor in retaining their support. The well-off are a powerful constituency, and the public school apparatus has offered them an educational and financial package so lucrative that few people could (or do) say no, whether they reside in red states or blue. [...]in building a \"diverse\" constituency to ballast themselves politically, the public schools have appealed not in a targeted way to the needy, but broadly and most beneficially to those who need very little.

Executive Summary Assessing the impact of policies offering in-state tuition and financial aid to undocumented immigrant youth is highly pertinent from a policy perspective. Eligible immigrants arrived as children and the United States is often the only home they have ever known. Without the right to stay or a path to citizenship, they cannot achieve their full potential as productive members of society. Policies improving access to higher education have the potential to elevate their social mobility and amplify economic contributions by improving job prospects and bolstering tax revenues. Since 2001, roughly half of the U.S. states have expanded in-state college tuition benefits to undocumented immigrants. Around one-third of states have also provided financial aid; yet approximately one-tenth have imposed heightened barriers to accessing higher education. While early studies found an increase in enrollment in states with in-state tuition policies, recent studies accounting for additional state policies found no impact on enrollment. These results mask varying impacts based on gender and marital status. We assess these policies, control for Deferred Action for Childhood Arrivals (DACA), and analyze the impact of in-state tuition on college enrollment, graduation rates, employment, and self-employment. Our analysis relies on data from the 2005 to 2019 American Community Survey. To identify individuals who are the most likely to be undocumented and affected by the policy, we focus on noncitizen Hispanic youth, excluding those likely authorized (e.g., licensed professionals, veterans, and refugees). That said, we are assuming that state policies are the same for all undocumented residents, not just the Hispanics in our sample. Our findings are as follows: - In our sample, there are 17,649 likely undocumented Hispanic men (14,249 women) aged 18–22 years who completed high school and arrived in the U.S. prior to age 16 years. Approximately 75 percent of them are Mexican. - The data reveals that approximately 30 percent of men are enrolled in college. Access to in-state tuition boosts enrollment by 7.2 percentage points for Hispanic men and by 13.2 percentage points for Mexican men. This response is driven by married men. Men in general do not graduate at higher rates. - Women enroll in college at the same rate across states. However, access to lower tuition raises graduation rates by 4.7 percentage points, representing nearly a 30 percent increase compared to the average graduation rate of 15.7 percent, particularly among single women. - Among men with access to in-state tuition, single men are more likely to be self-employed, while married men respond to the policy by working less, consistent with higher enrollment rates. - On average 55 percent of single women are employed. Access to in-state tuition increases employment by 12–19.8 percentage points for single women. We find no significant impact of the policy on the employment of married women. Our research indicates that while in-state tuition policies do make a difference, there is a need for a more nuanced policy approach, particularly due to gender disparities among the intended beneficiaries, which have previously been overlooked. However, we argue that relying solely on in-state tuition policies is insufficient. Single women are driven by these policies to complete their degrees and pursue employment. If policymakers aim for a broader impact and seek to include a more diverse group of undocumented youth, including men, they should consider enhancing opportunities within formal labor markets after college graduation. In support of this argument, we document higher graduation and employment rates and lower self-employment rates among DACA-eligible youth who have legal access to formal employment.