 How income contingent loans could affect the returns to higher education: a microsimulation of the French casePost-Print from HAL Abstract: We assess the implementation of income contingent loan (ICL) schemes for higher education in a context characterized by two main features: a formerly tuition-free system and a great heterogeneity in the quality and cost of higher education. In that case, ICL implementation leads to a trade-off between increasing "career" equity in terms of collective public spending versus individual gains and widening low education traps by reducing the incentives to pursue higher education. We rely on a dynamic microsimulation model to evaluate the degree to which low education traps are enlarged by the implementation of ICLs in France. We conclude that the risk of such traps getting larger is very low Keywords: higher education; income contingent loan; microsimulation; lifetime earnings; socio-fiscal system (search for similar items in EconPapers) Published in Education Economics, 2012, 20 (4), pp.402-429 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00718386 Access Statistics for this paper More papers in Post-Print from HAL |
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