University Graduation Dependent on Family’s Wealth, Ability and Social Status

Center for European, Governance and Economic Development (CEGE) Research No. 120

23 Pages Posted: 8 Apr 2011

See all articles by Tim Ehlers

Tim Ehlers

University of Goettingen (Göttingen) - Department of Economics

Date Written: April 5, 2011

Abstract

This paper presents a model showing an incentive for a group of people to vote for higher tuition fees, even if these fees have no quality effect. The incentive is based on a non-monetary influence on utility, namely the social status or prestige of graduating. The basic assumption is that the higher the prestige is, the lower the number of people studying. In a static equilibrium, it is shown that a group of wealthier and more able people can exist that attempts to prevent others from studying.

JEL Classification: I22, J24, H52

Suggested Citation

Ehlers, Tim, University Graduation Dependent on Family’s Wealth, Ability and Social Status (April 5, 2011). Center for European, Governance and Economic Development (CEGE) Research No. 120, Available at SSRN: https://ssrn.com/abstract=1803146 or http://dx.doi.org/10.2139/ssrn.1803146

Tim Ehlers (Contact Author)

University of Goettingen (Göttingen) - Department of Economics ( email )

Platz der Goettinger Sieben 3
Goettingen, 37073
Germany

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