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Higher Education Financing and the Educational Aspirations of Teenagers and their Parents

Author

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  • Anderberg, Dan

    (Royal Holloway, University of London)

  • Chevalier, Arnaud

    (Royal Holloway, University of London)

  • Hassani Nezhad, Lena

    (City University London)

  • Lührmann, Melanie

    (Royal Holloway, University of London)

  • Pavan, Ronni

    (University of Rochester)

Abstract

We study the impact of higher education financing on the academic aspirations of teenagers and of their parents. We exploit a reform which introduced a large increase in the maximum university tuition fees and a more redistributive student loan system, both of which varied across the UK's constituent countries. Using rare survey data on postcompulsory secondary and university education aspirations, we find that teenagers' aspirations are not responsive to large changes in higher education financing. In contrast, the socio-economic gap in parental aspirations for their childrens' education is reduced through the reform, in accordance with the redistributive financing policies set by policy-makers.

Suggested Citation

  • Anderberg, Dan & Chevalier, Arnaud & Hassani Nezhad, Lena & Lührmann, Melanie & Pavan, Ronni, 2020. "Higher Education Financing and the Educational Aspirations of Teenagers and their Parents," IZA Discussion Papers 13807, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13807
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    1. Alexis Orellana & Kegon Teng Kok Tan, 2023. "Skills, Aspirations, and Occupations," Working Papers 2023-027, Human Capital and Economic Opportunity Working Group.

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    More about this item

    Keywords

    university cost; access to higher education; education aspirations;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

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