The growth of for-profit colleges has been historically aided by online instruction, and budget crunches at public institutions, circumstances which have resurfaced during the COVID-19 pandemic. We set up and calibrate a general equilibrium model of competition between public and for-profit...

The number of tertiary students enrolled outside their home country has almost doubled in the last decade. In higher education systems that are partly tax-funded, a country's labor force might not be willing to subsidize the education of foreign students who can be expected to work abroad after...

We analyze the impact of expansion of higher education on student outcomes in the context of competition among colleges which differentiate themselves horizontally by setting curricular standards. When public or economic pressures compel less selective colleges to lower their curricular demands,...

Since the 1980s the United States has faced growing disinterest and high attrition from STEM majors. Over the same period, foreign-born enrollment in U.S. higher education has increased steadily. This paper examines whether foreign-born peers affect the likelihood American college students...

In recent years, many countries have experienced a significant expansion of higher education enrolment. There is a particular interest among policy makers for further growth in STEM subjects, which could lead to larger classes in these fields. This study estimates the effect of class size on...

This paper explores students' expectations about the returns to completing higher education and provides first evidence on perceived signaling and human capital effects. We elicit counterfactual labor market expectations for the hypothetical scenarios of leaving university with or without a...

This paper examines systematic inequalities in the match between students and the university degree they apply to, and enroll in. Using linked administrative data on the population of Portuguese applicants we create a transparent and continuous measure of student-to-degree match employing...

Recent criticism from different sides has expressed the view that, with scarce resources, there is little justification for massive public funding of higher education. Central to the debate is the conjecture that colleges and universities use their resources inefficiently and focus...

This paper analyzes how integrated labor markets affect the financing of higher education. For this, we employ a general-equilibrium model with overlapping generations and individuals who differ in their abilities. At the first stage, governments can choose the quality of education and the...

This paper analyses political forces that cause an initial expansion of public spending on higher education and an ensuing decline in subsidies. Growing public expenditures increase the future size of the higher income class and thus boost future demand for education. This demand shift implies...