The UK, alongside the United States, is one of the worst performing countries in the OECD in terms for intergener- ational mobility.2 The model takes into account both the preferences of students for universities and the preferences of universities for students. [...] The bottom panel of the figure shows the same set of points, but now the colour indicates course quality.13 This demonstrates the substantial amount of sorting on ability in the UK’s higher education system, with the highest quality courses admitting the highest skilled individuals. [...] 32 Average quantitive skills, simulation 6.3 Validation of the model through the 2012 reforms As a further exploration of the ability of our model to simulate sorting patterns in the market, we test how well the model is able to replicate the effects of the large reforms to student loans that occurred in 2012. [...] However, the contempo- raneous changes to the income contingent loan repayment terms - and in particular, the raising of the loan repayment threshold - meant that the impact of higher tuition fees on the returns to higher education varied substantially depending on expected earnings. [...] It splits the population in the bottom and top half of the SES distribution in the top panel, and does the same for ‘high ability’ students (as measured by being in the top 20% for average communication and quantitative skills) in the bottom panel.29 Policy 1, which involves free fees and maintenance support for SES students, results in a small increase in overall participation amongst poorer stud.
- Pages
- 67
- Published in
- United Kingdom
