Arbeitspapier

Income Contingency and the Electorate's Support for Tuition

We show that the electorate's preferences for using tuition to finance higher education strongly depend on the design of the payment scheme. In representative surveys of the German electorate (N>18,000), experimentally replacing regular upfront by deferred income-contingent payments increases public support for tuition by 18 percentage points. The treatment turns a plurality opposed to tuition into a strong majority of 62 percent in favor. Additional experiments reveal that the treatment effect similarly shows when framed as loan repayments, when answers carry political consequences, and in a survey of adolescents. Reduced fairness concerns and improved student situations act as strong mediators.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 9520

Classification
Wirtschaft
National Government Expenditures and Education
Educational Finance; Financial Aid
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Subject
tuition
higher education finance
income-contingent loans
voting

Event
Geistige Schöpfung
(who)
Lergetporer, Philipp
Woessmann, Ludger
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2022

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Lergetporer, Philipp
  • Woessmann, Ludger
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2022

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