Post-Compulsory Education: Participation and Politics

In a much-cited paper Fernandez and Rogerson (1995) suggest that public
spending on higher education is politically sustained by middle- and high
income groups voting for a policy which is positive but not generous enough
to allow lower income families to overcome the financial constraints that
prevent their participation. Using a quantitative model, calibrated to the
UK economy, we find that current public spending on post compulsory
education corresponds to a political equilibrium. Support for the
equilibrium policy comes primarily from low- and middle income groups,
indicating that the policy needn't be highly regressive. Credit constraints
play a minor role.