@techreport{Hendel2004Educational,
abstract = {Affordable higher education is, and has been, a key element of social policy in the United States
with broad bipartisan support. Financial aid has substantially increased the number of people
who complete university?generally thought to be a good thing. We show, however, that
making education more affordable can increase income inequality. The mechanism that drives
our results is a combination of credit constraints and the ?signaling? role of education first
explored by Spence (1973). When borrowing for education is difficult, lack of a college
education could mean that one is either of low ability or of high ability but with low financial
resources. When government programs make borrowing easier or tuition more affordable,
high-ability persons become educated and leave the uneducated pool, driving down the wage
for unskilled workers and raising the skill premium.},
author = {Igal Hendel and Joel Shapiro and Paul Willen},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D82; J31; I28; I22; 330; Education signaling; college premium; college loans; Bildungschancen; Bildungspolitik; Einkommensverteilung; Lohnstruktur; Qualifikation; Sch\"{a}tzung; USA},
language = {eng},
number = {04,5},
title = {Educational Opportunity and Income Inequality},
type = {Public policy discussion papers / Federal Reserve Bank of Boston},
url = {http://hdl.handle.net/10419/23451},
year = {2004}
}

