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- 'You pay your share, we'll pay our share': the college cost burden and the role of race, income, and college assets
Changes in financial aid policies raise questions about students being asked to pay too much for college and whether parents' college savings for their children helps reduce the burden on students to pay for college. Using trivariate probit analysis with predicted probabilities, in this exploratory study we find recent changes in the financial aid system place a higher responsibility on African American, Latino/Hispanic, and moderate-income students to pay for college themselves. We also find when parents open a savings account, start a state-sponsored savings plan, or open a college investment fund students are less likely to pay for college with student contributions. Therefore, we suggest in addition to grants and scholarships, policies that encourage accumulation of savings for college among minority and lower income families may help reduce the college cost burden they experience.
Changes in financial aid policies raise questions about students being asked to pay too much for college and whether ... Show Full Abstract
- The full extent of student-college academic undermatch
This paper quantifies the extent of student-college 'academic undermatch,' which occurs when a student's academic credentials permit them access to a college or university that is more selective than the postsecondary alternative they actually choose. Using a nationally representative dataset, we find that 41 per cent of students undermatch in their postsecondary choice. We also find that academic undermatch affects students with a range of academic credentials, but is more common among those students from low socioeconomic status families, who live in rural areas, and whose parents have no college degree. Finally, we show that between the 1992 and 2004 high school senior cohorts, academic undermatch has decreased by nearly 20 per cent. The decrease is partially due to students being more likely to apply to a matched college.
This paper quantifies the extent of student-college 'academic undermatch,' which occurs when a student's academic ... Show Full Abstract
- Inequality of opportunity for educational achievement in Latin America: evidence from PISA 2006-2009
We evaluate how far away six Latin American countries stand from a normative goal of equality of opportunity for educational achievement in [OECD's Programme for International Student Assessment] PISA 2006-2009. We work with alternative characterization of types: gender, school type (public or private), parental education, and their combinations. Following Checchi-Peragine's (2010) non-parametric method, we find that inequality of opportunity for educational achievement in Latin America ranges from less than one per cent to up to 25 per cent, depending on the year, the country, the subject and the specification of circumstances. The magnitudes are substantial with respect to what is found in comparator countries. Parental education and school type prove to be important sources of inequality of opportunity, contrary to gender. By means of sensitivity analyses, while most results show small to moderate variation in terms of magnitudes, in ordinary terms (rankings) they remain quite stable. Brazil stands out as the most opportunity unequal country of the sample.
We evaluate how far away six Latin American countries stand from a normative goal of equality of opportunity for educational ... Show Full Abstract
- Student incentives and preferential treatment in college admissions
We consider a framework in which the optimal admissions policy of a purely academic-quality oriented college implements preferential treatment in favor of the student from the deprived socioeconomic background which maximizes the competition between candidates. We find that the exact form of the preferential treatment admissions policy matters for student incentives and hence for student-body diversity in equilibrium. Preferential treatment policy in college admissions often takes, or is perceived to take, an additive form where the score of the applicant from the deprived background is augmented y a fixed number of points. Such a preferential treatment policy fails to incentivize students from the deprived background. Despite the affirmative action, the level of preferential treatment that achieves academic excellence leaves student-body diversity unchanged compared with a background-blind admissions policy and leads to a higher intergroup score gap.
We consider a framework in which the optimal admissions policy of a purely academic-quality oriented college implements ... Show Full Abstract
- The redistributive equity of affirmative action: exploring the role of race, socioeconomic status, and gender in college admissions
This paper contributes to research on affirmative action by examining issues of equity in the context of racial quotas in Brazil. We study the experience of the University of Brasilia, which established racial quotas in 2004 reserving 20 per cent of available admissions slots for students who self-identified as black. Based on university admissions data and a student survey conducted by the authors, we find evidence that race, socioeconomic status, and gender were considerable barriers to college attendance and achievement. For example, first-difference regressions involving pairs of siblings indicate that black identity and gender had a negative effect on entrance exam scores. Moreover, we compare displaced and displacing applicants and find that racial quotas helped promote equity to some extent. Nevertheless, the scale and scope of redistribution were highly limited, and the vast majority of Brazilians had little chance of attending college, suggesting that more still needs to be done.
This paper contributes to research on affirmative action by examining issues of equity in the context of racial quotas in ... Show Full Abstract
- Parental education, grade attainment and earnings expectations among university students
While there is an extensive literature on intergenerational transmission of economic outcomes (education, health and income for example), many of the pathways through which these outcomes are transmitted are not as well understood. We address this deficit by analysing the relationship between socio-economic status and child outcomes in university, based on a rich and unique dataset of university students. While large socio-economic differences in academic performance exist at the point of entry into university, these differences are substantially narrowed during the period of study. Importantly, the differences across socio-economic backgrounds in university grade attainment for female students is explained by intermediating variables such as personality, risk attitudes and time preferences, and subject/college choices. However, for male students, we explain less than half of the socio-economic gradient through these same pathways. Despite the weakening socio-economic effect in grade attainment, a key finding is that large socio-economic differentials in the earnings expectations of university students persist, even when controlling for grades in addition to our rich set of controls. Our findings pose a sizable challenge for policy in this area as they suggest that equalising educational outcomes may not translate into equal labour market outcomes.
While there is an extensive literature on intergenerational transmission of economic outcomes (education, health and income ... Show Full Abstract
- (Un)desirable effects of output funding for Flemish universities
Governments introducing output parameters (e.g. graduation numbers) in the funding rule of universities believe that it will induce universities to raise their teaching efforts while educational standards will remain unaffected. In this article we first show on theoretical grounds that this desire can only be fulfilled if there exist positive interaction effects between student ability, student effort and teaching effort in the educational production function. Secondly, even if this is the case we argue that universities attracting more students with a vulnerable socioeconomic background will not be rewarded for raising their teaching effort in the same way as other universities. Empirical data on success rates of Flemish university students reveal indeed a strong correlation between students' probabilities of success and socioeconomic background. Moreover, we find a strong social clustering within universities.
Governments introducing output parameters (e.g. graduation numbers) in the funding rule of universities believe that it will ... Show Full Abstract
- Keeping up with the Joneses: institutional changes following the adoption of a merit aid policy
The increasing use by private colleges and universities of financial aid based on 'merit', as opposed to based solely on financial need has caused many to raise concerns that this type of aid will go mainly to higher income students crowding out aid to lower income students. However, some analysts suggest that by attracting more 'almost full-paying' students through the use of merit aid, institutions will have more financial resources that they can use to increase their financial aid to low-income students and thus their enrollment. Results using data from the College Board's Annual Survey of Colleges and other secondary data sources suggest that the increased use of merit aid is associated with a decrease in enrollment of low-income and minority students, particularly at more selective institutions. Middle and bottom tier colleges may be offsetting costs with tuition increases, as the introduction of merit aid is accompanied by an increase in net costs.
The increasing use by private colleges and universities of financial aid based on 'merit', as opposed to based solely on ... Show Full Abstract
- Do inequalities in parents’ education play an important role in PISA students’ mathematics achievement test score disparities?
This paper measures and decomposes socioeconomic-related inequality in mathematics achievement in 15 European Union (EU) member states. Data is taken from the 2003 wave of the OECD Programme for International Student Assessment (PISA). There is socioeconomic-related inequality in mathematics achievement, favoring the higher socioeconomic groups in each country. There are important differences among countries. The inequality is higher in Germany, Greece, Great Britain, Belgium, and Portugal and is lower in Sweden and Finland. Socioeconomic factors represent between 14.9 per cent and 34.6 per cent of the overall inequality in education. The decomposition exercises add important insights for policy. Despite the differences, EU-15 member states can be categorized into two main groups. The first includes the Nordic countries plus Great Britain, Ireland, Portugal, Spain, and Greece, where socioeconomic-related inequality appears to be explained mainly by the students’ background characteristics. In Portugal and, to a lesser extent, in Spain the high contribution of socioeconomic background is mainly due to the prevalence of high socioeconomic inequality and socioeconomic concentration of educational resources. The second group includes Austria, Belgium, Germany, Italy, Luxembourg, The Netherlands, and France. In these countries, the high impact of schools’ composition on individual achievement is the main driver of the studied inequality. Differences between countries are also explored.
This paper measures and decomposes socioeconomic-related inequality in mathematics achievement in 15 European Union (EU) ... Show Full Abstract
Authors: Martins, Lurdes; Veiga, Paula
Geographic subjects: Europe; Germany; Greece;Great Britain; Belgium; Portugal; Sweden; Finland; Ireland; Spain; Austria; Italy; Luxembourg; Netherlands; France show more
Journal title: Economics of education review
Resource type: Article
Subjects: Equity; Outcomes; Students
- Do bans on affirmative action hurt minority students?: evidence from the Texas top 10 per cent plan
In light of the recent bans on affirmative action in higher education, this paper provides new evidence on the effects of alternative admissions policies on the persistence and college completion of minority students. I find that the change from affirmative action to the top 10 per cent plan in Texas decreased both retention and graduation rates of lower-ranked minority students. Results show that both fall-to-fall freshmen retention and six-year college graduation of second-decile minority students decreased, respectively, by 2.4 and 3.3 percentage points. The effect of the change in admissions policy was slightly larger for minority students in the third and lower deciles: fall-to-fall freshmen retention and six-year college graduation decreased, respectively, by 4.9 and 4.2 percentage points. Moreover, I find no evidence in support of the minority ‘mismatch’ hypothesis. These results suggest that most of the increase in the graduation gap between minorities and non-minorities in Texas, a staggering 90 per cent, was driven by the elimination of affirmative action in the 1990s.
In light of the recent bans on affirmative action in higher education, this paper provides new evidence on the effects of ... Show Full Abstract