College Expansion and Curriculum Choice

This paper analyzes the impact of college enrollment expansion on student academic achievements and labor market outcomes. When public policies promote “access” to college education, colleges adjust their curricula: Non-elite public colleges adopt a less demanding curriculum to accommodate the influx of low-ability students, benefiting them at the expense of middle-ability students. In response to the reduced competitive pressure for middle-ability students, private colleges adopt a more demanding curriculum to better serve their high-ability students, again at the expense of middle-ability students. The model offers an explanation to the observed U-shaped earnings growth profile among college-educated workers in the U.S.