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Identifying Preferences for Equal College Access, Income, and Income Equality

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  • Bernardo Lara

    (School of Business and Economics Universidad de Talca Santiago, Chile)

  • Kenneth A. Shores

    (Health and Human Development Pennsylvania State University University Park, PA 16802)

Abstract

Revealed preferences for equal college access may be due to beliefs that equal access increases societal income or income equality. To isolate preferences for those goods, we implement an online discrete choice experiment using social statistics generated from true variation among commuting zones. We find that, ceteris paribus, the average income that individuals are willing to sacrifice is (1) $4,984 to increase higher education enrollment by 1 standard deviation (14 percent); (2) $1,168 to decrease rich/poor gaps in higher education enrollment by 1 standard deviation (8 percent); and (3) $2,900 to decrease the 90/10 income inequality ratio by 1 standard deviation (1.66). In addition, we find that political affiliation is an important moderator of preferences for equality. While both Democrats and Republicans are willing to trade over $4,000 to increase higher education enrollment by 1 standard deviation, Democrats are willing to sacrifice nearly three times more income to decrease either rich/poor gaps in higher education enrollment or the 90/10 income inequality ratio by 1 standard deviation.

Suggested Citation

  • Bernardo Lara & Kenneth A. Shores, 2020. "Identifying Preferences for Equal College Access, Income, and Income Equality," Education Finance and Policy, MIT Press, vol. 15(2), pages 270-291, Spring.
    • Handle: RePEc:tpr:edfpol:v:15:y:2020:i:2:p:270-291
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    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/edfp_a_00271
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    Cited by:

    1. Xuhui Ding & Yong Chen & Min Li & Narisu Liu, 2022. "Booster or Killer? Research on Undertaking Transferred Industries and Residents’ Well-Being Improvements," IJERPH, MDPI, vol. 19(22), pages 1-19, November.

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