A Fracturing Social Contract? How Perceptions of the Value of Higher Education are Changing

Stuart J. Heckman (), Jodi C. Letkiewicz and Kyoung Tae Kim
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Stuart J. Heckman: Kansas State University
Jodi C. Letkiewicz: York University
Kyoung Tae Kim: The University of Alabama

Journal of Family and Economic Issues, 2023, vol. 44, issue 1, No 11, 156-174

Abstract: Abstract This study leverages two national datasets to assess the changing value perceptions of higher education. Human capital and social contract theories are used to frame the analysis and discussion around the shifting perceptions. The study finds that, in 2016, approval rates for education borrowing dropped to the lowest level since 1992. Respondents who are younger, have debt, and are more willing to take risks are more likely to approve of borrowing. Women and Blacks are more likely to approve of borrowing. Women are more likely to indicate that the cost of higher education is not worth it. Income, education, and homeownership were associated with the belief that education was worth the cost, while having student loans was associated with the belief that education was not worth the cost. The results indicate that the social contract regarding higher education may be fracturing for specific groups in the US—specifically for women and those who need to borrow to finance their education. Implications for policymakers are discussed.

Keywords: Student debt; Social contract; Value of higher education; Survey of Consumer Finances; Survey of Household Economics and Decisionmaking (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10834-021-09811-2

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