Social origin and the financial feasibility of going to university: the role of wage penalties and availability of funding. Issue 11 (2nd November 2019)

• Record Type: Journal Article
• Authors: Findlay, Jeanette; Hermannsson, Kristinn
• Is Part Of: Studies in higher education. Volume 44:Issue 11(2019)
• Page Start: 2025
• Page End: 2040
• Publication Date: 2019-11-02
• Subjects: Higher education -- participation rates -- social origin -- investment -- wage penalty -- returns to education; CG12 -- H52 -- I22 -- I23 -- I24 -- J08; Education, Higher -- Periodicals; 378.005
• DOI: 10.1080/03075079.2018.1488160
• Languages: English
• ISSNs: 0307-5079

Abstract

ABSTRACT: The evidence on why students from lower social origin are persistently underrepresented in higher education (HE) suggests social, educational and economic factors all play a role. We concentrate on the influence of monetary costs/benefits and how these are influenced by social origin. In particular, we consider the effect of a class-based wage penalty in the labour market and, using evidence from a large-scale survey of Scottish students, we show how the greater financial constraints facing working-class students affects the incentive to participate in HE. Using a simple model of human capital investment, the low rate of working-class participation in HE is shown to be consistent with rational behaviour, i.e. weighing the monetary costs and benefits, participating in HE is a less attractive investment proposition for some students. We conduct simulations which suggest this could be mitigated by generous income-contingent support.