Stratification of public universities and students's segretation

We present a model which allows us to show that strati?cation of public universities according to the quality they o¤er and the quality of students they select is a plausible result even in a public university system where tuition fees are uniform and decided by the administration. This result is similar to that observed in private and competitive university systems. We prove that it is very unlikely that segregation and strati?cation could be avoided by subsidizing those universities that are more ine¢ cient. We show also that even if strati?cation and segregation could be removed with subsidies, it would be at the cost of ?xing quality limits at the whole university system