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Tuition fees, self-esteem and social heterogeneity

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  • David Flacher
  • Hugo Harari-Kermadec

Abstract

Modelling students' behaviour in relation to tuition fees is a complex task since students' ‘talent’ is not common knowledge. Students observe a private noisy signal of their abilities, while university receives noisy information based on the quantitative and qualitative data provided by university applicants. In this article, we add the heterogeneity of the population to this model: we assume that this heterogeneity means that the perception of skills among a part of the population is biased and underestimates the capabilities of its members to succeed in the higher education system. Our conclusions differ from those derived in the literature and show in particular that the optimal tuition fees for a given number of students are lower than those obtained for a homogeneous population.

Suggested Citation

  • David Flacher & Hugo Harari-Kermadec, 2013. "Tuition fees, self-esteem and social heterogeneity," Education Economics, Taylor & Francis Journals, vol. 21(2), pages 191-210, March.
    • Handle: RePEc:taf:edecon:v:21:y:2013:i:2:p:191-210
    DOI: 10.1080/09645292.2011.561630
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    References listed on IDEAS

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    1. Frenette, Marc, 2005. "The Impact of Tuition Fees on University Access: Evidence from a Large-scale Price Deregulation in Professional Programs," Analytical Studies Branch Research Paper Series 2005263e, Statistics Canada, Analytical Studies Branch.
    2. Finnie, Ross & Lascelles, Eric & Sweetman, Arthur, 2005. "Who Goes? The Direct and Indirect Effects of Family Background on Access to Post-secondary Education," Analytical Studies Branch Research Paper Series 2005237e, Statistics Canada, Analytical Studies Branch.
    3. Frenette, Marc, 2007. "Pourquoi les jeunes provenant de familles a plus faible revenu sont-ils moins susceptibles de frequenter l'universite? Analyse fondee sur les aptitudes aux etudes, l'influence des parents et les contr," Direction des études analytiques : documents de recherche 2007295f, Statistics Canada, Direction des études analytiques.
    4. Frenette, Marc, 2005. "Summary Of: The Impact of Tuition Fees on University Access: Evidence from a Large-scale Price Deregulation in Professional Programs," Analytical Studies Branch Research Paper Series 2005264e, Statistics Canada, Analytical Studies Branch.
    5. Frenette, Marc, 2007. "Why Are Youth from Lower-income Families Less Likely to Attend University? Evidence from Academic Abilities, Parental Influences, and Financial Constraints," Analytical Studies Branch Research Paper Series 2007295e, Statistics Canada, Analytical Studies Branch.
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    Cited by:

    1. Philippe Batifoulier & Denis Abecassis & Nicolas da Silva & Victor Duchesne & Léonard Moulin, 2016. "L’utilité sociale de la dépense publique," Working Papers hal-01421197, HAL.
    2. Juan Bautista Abello-Romero & Daniel López & Francisco Ganga & Claudio Mancilla, 2021. "Perceptions on Regulation and Asymmetry of Information as Critical Factors in University Governance in Latin America," SAGE Open, , vol. 11(2), pages 21582440211, June.
    3. Courtioux, Pierre & Gregoir, Stéphane & Houeto, Dede, 2014. "Modelling the distribution of returns on higher education: A microsimulation approach," Economic Modelling, Elsevier, vol. 38(C), pages 328-340.
    4. Guilhem Lecouteux & Léonard Moulin, 2015. "To gain or not to lose? Tuition fees for loss averse students," Economics Bulletin, AccessEcon, vol. 35(2), pages 1005-1019.
    5. Philippe Batifoulier & Denis Abecassis & Nicolas da Silva & Victor Duchesne & Léonard Moulin, 2016. "L’utilité sociale de la dépense publique," CEPN Working Papers hal-01421197, HAL.

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