Identifying Preferences for Equal Educational Opportunity, Income, and Income Equality
50 Pages Posted: 6 Jul 2017 Last revised: 4 Nov 2017
Date Written: July 3, 2017
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: Suggested Citation