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Title: The Rotten Kid at College: The Incentive Effects of Higher Education Subsidies on Student Achievement
Resulting in 1 citation.
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Sahin, Aysegul |
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The Rotten Kid at College: The Incentive Effects of Higher Education Subsidies on Student Achievement Department of Economics, Purdue University, West Lafayette, IN, October 2001. Also: http://www.mgmt.purdue.edu/faculty/asahin/subsidy.pdf Cohort(s): NLSY79 Publisher: Department of Economics, Purdue University Keyword(s): College Education; College Enrollment; Colleges; Education; Educational Costs; Educational Returns; Tuition Permission to reprint the abstract has not been received from the publisher. Higher education subsidies encourage college enrollment by reducing tuitioncosts. Despite the abundant literature on the enrollment effects of low-tuition policies, little has been done to analyze the disincentive effects of these policies on student performance. I employ a game-theoretical model to analyze how parents and students respond to tuition subsidies. The model is calibrated using information from the High School and Beyond Sophomore Cohort and the National Longitudinal Survey of Youth 1979 data sets. The experiments imply that subsidizing tuition, while increasing enrollment rates, may considerably reduce students? efforts. First of all, a low-tuition, high-subsidy strategy causes an increase in the ratio of less able and less highly-motivated students among college graduates. Secondly, and more importantly, all students, even the more highly motivated ones, respond to lower tuition levels by decreasing their effort levels. I conclude that high-subsidy, low-tuition policies, indeed, have disincentive effects on students? study time. |
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Bibliography Citation
Sahin, Aysegul. "The Rotten Kid at College: The Incentive Effects of Higher Education Subsidies on Student Achievement." Department of Economics, Purdue University, West Lafayette, IN, October 2001. |