Why Academic Quality in Higher Education Declines

33 Pages Posted: 18 Sep 2015

See all articles by Volker Meier

Volker Meier

CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Ifo Institute for Economic Research at the University of Munich

Ioana C. Schiopu

ESADE Ramon Llull University - Department of Economics

Date Written: August 20, 2015

Abstract

We investigate the choice of quality, or academic content, in higher education in a two-sector model. Individuals are differentiated according to their cost of acquiring human capital. A higher academic quality increases productivity upon training, but is also associated with higher cost of acquiring skill. We consider both a differentiated university system in which quality is tailored to the individual need, and a uniform quality system being politically determined. The former yields a higher income dispersion. Average quality decreases under both systems when the skill premium increases. Moving from a single stage to a two-stage scheme reduces quality in the first stage and increases quality in the second stage. Increasing differentiation in higher education can decrease student effort and skill of medium ability types.

Keywords: higher education, enrollment, quality, higher education systems

JEL Classification: I210, I230, I280, J240

Suggested Citation

Meier, Volker and Schiopu, Ioana C., Why Academic Quality in Higher Education Declines (August 20, 2015). CESifo Working Paper Series No. 5480. Available at SSRN: https://ssrn.com/abstract=2661408

Volker Meier (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Ifo Institute for Economic Research at the University of Munich ( email )

Poschingerstr. 5
Munich
Germany

Ioana C. Schiopu

ESADE Ramon Llull University - Department of Economics ( email )

Av. de Pedralbes, 60-62
Barcelona, 08034
Spain

HOME PAGE: http://profesores.esade.edu/ioanaschiopu

Register to save articles to
your library

Register

Paper statistics

Downloads
49
Abstract Views
567
PlumX Metrics