Borrowing constraints, college aid, and intergenerational mobility

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Detail(s)

Original languageEnglish
Pages (from-to)1-41
Journal / PublicationJournal of Human Capital
Volume8
Issue number1
Publication statusPublished - 2014

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.

Citation Format(s)

Borrowing constraints, college aid, and intergenerational mobility. / Hanushek, Eric A.; Leung, Charles Ka Yui; Yilmaz, Kuzey.

In: Journal of Human Capital, Vol. 8, No. 1, 2014, p. 1-41.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review