Abstract
This paper provides a consistent comparison of general tuition subsidies, needbased student aid, merit-based student aid, and income-contingent loans {eth}ICL{Thorn}. Each of these policies is analyzed through a dynamic general equilibriummodel in which individuals differ in family wealth and opportunities of completing college. The overlapping-generation structure of the model permits evaluation of different aid schemes in their implications on the aggregate outcomes, income distribution, and intergenerational mobility. Compared to current US tuition and loan policies, the ICL and need-based policies are most effective in promoting aggregate efficiency and income equality, while merit-based policies are least effective. © 2014 by The University of Chicago. All rights reserved.
| Original language | English |
|---|---|
| Pages (from-to) | 1-41 |
| Journal | Journal of Human Capital |
| Volume | 8 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 2014 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 1 No Poverty -
SDG 10 Reduced Inequalities
Publisher's Copyright Statement
- COPYRIGHT TERMS OF DEPOSITED FINAL PUBLISHED VERSION FILE: © 2014 by The University of Chicago. All rights reserved. Hanushek, E. A., Leung, C. K. Y., & Yilmaz, K. (2014). Borrowing constraints, college aid, and intergenerational mobility. Journal of Human Capital, 8(1), 1-41. https://doi.org/10.1086/675501. This full text is made available under CC-BY-NC 4.0. https://creativecommons.org/licenses/by-nc/4.0/.
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