Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19095
Authors: 
Haupt, Alexander
Year of Publication: 
2005
Series/Report no.: 
CESifo Working Paper 1631
Abstract: 
This paper analyses political forces that cause an initial expansion of public spending on higher education and an ensuing decline in subsidies. Growing public expenditures increase the future size of the higher income class and thus boost future demand for education. This demand shift implies that the initial subsidy per student becomes too expensive to be politically sustainable. Despite a voters? backlash that curbs education subsidies, overall enrolments continue to rise. But the participation rate of the children of lower income families, that went up in the expansion period, declines over time, both in absolute terms and relative to the rate of their counterparts from higher income households.
Subjects: 
higher education
voting
social stratification
social mobility
overlapping generations
JEL: 
H52
D72
I28
I22
O15
Document Type: 
Working Paper

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