Higher Education Financing and the Educational Aspirations of Teenagers and Their Parents

45 Pages Posted: 27 Oct 2020

See all articles by Dan Anderberg

Dan Anderberg

University of London, Royal Holloway College - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Arnaud Chevalier

University of London - Royal Holloway College

Lena Hassani Nezhad

University of London

Melanie Luhrmann

Royal Holloway, University of London; Institute for Fiscal Studies (IFS)

Ronni Pavan

University of Chicago - Department of Economics

Abstract

We study the impact of higher education financing on the academic aspirations of teenagers and of their parents. We exploit a reform which introduced a large increase in the maximum university tuition fees and a more redistributive student loan system, both of which varied across the UK's constituent countries. Using rare survey data on postcompulsory secondary and university education aspirations, we find that teenagers' aspirations are not responsive to large changes in higher education financing. In contrast, the socio-economic gap in parental aspirations for their childrens' education is reduced through the reform, in accordance with the redistributive financing policies set by policy-makers.

Keywords: education aspirations, university cost, access to higher education

JEL Classification: I23, I22, I24, J24, D84

Suggested Citation

Anderberg, Dan and Chevalier, Arnaud and Hassani Nezhad, Lena and Luhrmann, Melanie and Pavan, Ronni, Higher Education Financing and the Educational Aspirations of Teenagers and Their Parents. IZA Discussion Paper No. 13807, Available at SSRN: https://ssrn.com/abstract=3718187

Dan Anderberg (Contact Author)

University of London, Royal Holloway College - Department of Economics ( email )

Royal Holloway College
Egham
Surrey, Surrey TW20 0EX
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Arnaud Chevalier

University of London - Royal Holloway College ( email )

Senate House
Malet Street
London, TW20 0EX
United Kingdom

Lena Hassani Nezhad

University of London ( email )

Senate House
Malet Street
London, WC1E 7HU
United Kingdom

Melanie Luhrmann

Royal Holloway, University of London ( email )

Egham Hill
Egham
Surrey, Surrey TW20 0EX
United Kingdom

HOME PAGE: http://https://sites.google.com/site/melanieluhrmann/

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

Ronni Pavan

University of Chicago - Department of Economics ( email )

1126 East 59th Street
Chicago, IL 60637
United States

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