We assume that students can acquire a wage premium, thanks to studies, and form a rational expectation of their future … earnings, which depends on personal "ability". Students receive a private, noisy signal of their ability, and universities can … of test scores. Students optimally self-select as a result of pricing only. If capital markets are perfect but …

enrollment among students with low parental income and improve life-cycle earnings outcomes. This paper calculates the elasticity … there is a sharp increase in aggregate educational attainment as a result of the subsidy. However, I also find that there is … an overall decrease in mean life-cycle earnings due to students downgrading from 4-year colleges to 2-year colleges …

We assume that students can acquire a wage premium, thanks to studies, and form a rational expectation of their future … earnings, which depends on personal ability. Students receive a private, noisy signal of their ability, and universities can … of test scores. Students optimally self-select as a result of pricing only. If capital markets are perfect but …

higher education students by low-interest loans. We show that this reform had a large impact on education choices of … secondary school students, lowering their enrolments in college-preparing tracks and increasing the share of students … that secondary school students respond to the modes of higher education financing well ahead of their graduation, and that …

targeted forgiveness of student loans on student college enrollment and completion or dropout decisions. We focus on students … subsidy with partial forgiveness of student debt conditional on dropping out has a doubly efficient effect of risk mitigation …, moreover, superior in terms of mitigating the “bad debt” held by students, that unrecouped by returns to college. Budget …