Does a public university system avoid the stratification of public universities and the segregation of students?

Joan Rosselló Villalonga

No 26, DEA Working Papers from Universitat de les Illes Balears, Departament d'Economía Aplicada

Abstract: We present a model which allows us to show that even in a public university system where tuition and fees are fixed by the administration, a stratification of public universities according to the quality they offer and the quality of students they select, can be observed. This result is similar to that observed in private and competitive university systems. We also show that it is very unlikely that segregation and stratification could be avoided by subsidizing those universities that are more inefficient. We show also that even if stratification and segregation could be corrected with subsidies it would be at the cost of fixing the upper-bounds at the quality that could be offered at any university, hence fixing quality limits at the whole university system.

Keywords: School choice; state and federal aid. (search for similar items in EconPapers)
JEL-codes: H24 I28 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-edu, nep-hrm and nep-sog
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Persistent link: https://EconPapers.repec.org/RePEc:ubi:deawps:26

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