ERIC Number: ED037157
Record Type: RIE
Publication Date: 1969-Dec
Reference Count: 0
Income Redistribution Effects of Higher Education.
Hansen, W. Lee
This paper examines the redistribution impact of public higher education in California and Wisconsin. The focus is on state, rather than federal, subsidies and the undergraduate level. A study of the operation of the California higher education system indicates that income from poor and lower-middle income families is redistributed to upper-middle and high income families. These results hinge upon several parameters: the state tax structure, family income distribution of students enrolled in different schools, tuition charges, and full educational costs per student at different schools. In contrast to California, where subsidies tend to be proportional to family income, in Wisconsin, subsidies tend to be redistributive (or inversely related) to family income. Regardless of the redistributive effect, the present system tends to penalize high school graduates who do not go to college, often those from modest income families, and those who go to private colleges. It also tends to subsidize students who don't need it, and discourages young people from pursuing non-subsidized programs more appropriate to their vocational interests. (AF)
Publication Type: N/A
Education Level: N/A
Sponsor: Office of Economic Opportunity, Washington, DC.
Authoring Institution: Wisconsin Univ., Madison.
Identifiers: California; Wisconsin
Note: Paper presented at the annual meeting of the American Economic Association, New York, December 1969