Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/23451 
Erscheinungsjahr: 
2004
Schriftenreihe/Nr.: 
Public Policy Discussion Papers No. 04-5
Verlag: 
Federal Reserve Bank of Boston, Boston, MA
Zusammenfassung: 
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.
Schlagwörter: 
Education signaling
college premium
college loans
JEL: 
D82
J31
I28
I22
Dokumentart: 
Working Paper

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