Identifying Preferences for Equal Educational Opportunity, Income, and Income Equality

50 Pages Posted: 6 Jul 2017 Last revised: 4 Nov 2017

See all articles by Bernardo Lara

Bernardo Lara

School of Business and Economics, University of Talca

Kenneth Shores

Pennsylvania State University

Date Written: July 3, 2017

Abstract

Revealed preferences for equal educational opportunity may be due to beliefs that opportunities increase societal income or income equality. To isolate preferences for those goods, we implement an online discrete choice experiment using social statistics generated from true variation among commuting zones. We find that, ceteris paribus, the average income that individuals are willing to sacrifice is (i) $5,208 dollars to increase higher education (HE) enrollment by 1 standard deviation (14%); (ii) $1,408 dollars to decrease rich/poor gaps in HE enrollment by 1 standard deviation (8%); (iii) $3,298 to decrease the 90/10 income inequality ratio by 1 standard deviation (1.66).

Keywords: Income Inequality, Equal Opportunity, Online Experiments, Social Welfare Preferences

JEL Classification: D31, D63, J62

Suggested Citation

Lara, Bernardo and Shores, Kenneth, Identifying Preferences for Equal Educational Opportunity, Income, and Income Equality (July 3, 2017). Available at SSRN: https://ssrn.com/abstract=2996575 or http://dx.doi.org/10.2139/ssrn.2996575

Bernardo Lara (Contact Author)

School of Business and Economics, University of Talca ( email )

Santa Elena 2222
Santiago
Chile

Kenneth Shores

Pennsylvania State University ( email )

Health and Human Development
University Park, PA 16802
United States
6505804655 (Phone)

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