We investigate the choice of quality, or academic content, in higher education in a two-sector model. Individuals are differentiated according to their cost of acquiring human capital. A higher academic quality increases productivity upon training, but is also associated with higher cost of...

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,...

Fiscal externalities arise if subsidies to higher education raise future net fiscal revenues. We investigate in which countries fiscal externalities provide a justification for increasing subsidies to higher education. First, we show that the marginal fiscal recovery rate, i.e. the ratio of the...

This paper examines inequalities in the match between student and degree quality using linked administrative data from schools, universities and tax authorities. We analyse two measures of match at the university-subject level: undergraduate enrollment qualifications, and graduate earnings. We...

Demand for personalized online tutoring in higher education is growing but there is little research on its effectiveness. We conducted an RCT offering remote peer tutoring in micro- and macroeconomics at a German university teaching online due to the Covid-pandemic. Treated students met in small...

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...

An ongoing debate in the literature on efficiency of higher education institutions concerns the indicator for research output in the empirical analysis. While several studies chose to use the number of publications, others rely on the overall amount of research grants. The present study...

Frequent non-completion in optional education can be efficient if dropouts optimally exercise an option rationally foreseen by previous enrollment choices. This paper shows that in educational opportunities and groups of students where enrollment resolves more pronounced individual uncertainty...

Higher education finance depends on the public’s preferences for charging tuition, which may be partly based on beliefs about the university earnings premium. To test whether public support for tuition depends on earnings information, we devise survey experiments in representative samples of...

Over the past decades the college sectors in the higher education systems of many Western countries have expanded their capacities massively. This happened even though colleges have been at a competitive disadvantage with universities which are publicly subsidized, while colleges must...