Hendel, Igal (contributor); Shapiro, Joel Andrew (contributor) - 2004
Affordable higher education is, and has been, a key element of social policy in the United States with broad bipartisan … thing. We show, however, that making education more affordable can increase income inequality. The mechanism that drives our … results is a combination of credit constraints and the 'signaling' role of education first explored by Spence (1973). When …