The paper analyzes the characteristics of the supply of higher education in different geographicalmacroareas using a strategic interaction framework. We investigate the issueof educational quality differentials in a centralized funding system. In the presence ofmoving costs and asymmetric information on individuals ability, we show that only highabilitystudents acquire education and the quality of education is lower in macroareaswhere the moving costs are higher in the only perfect Bayesian equilibrium consistentwith forward induction. Our model predicts that direct subsidies to universities may beineffective in improving the quality of education in the less developed areas. When regionaldisparities are not too large, efficiency can be increased by subsidizing studentmobility.
Students' Mobility and Regional Disparities in Quality and Returns to Education in Italy
ORDINE, Patrizia;ROSE G.
2007-01-01
Abstract
The paper analyzes the characteristics of the supply of higher education in different geographicalmacroareas using a strategic interaction framework. We investigate the issueof educational quality differentials in a centralized funding system. In the presence ofmoving costs and asymmetric information on individuals ability, we show that only highabilitystudents acquire education and the quality of education is lower in macroareaswhere the moving costs are higher in the only perfect Bayesian equilibrium consistentwith forward induction. Our model predicts that direct subsidies to universities may beineffective in improving the quality of education in the less developed areas. When regionaldisparities are not too large, efficiency can be increased by subsidizing studentmobility.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
