Earnings information and public preferences for university tuition: Evidence from representative experiments

Abstract

Higher education finance depends on the public’s preferences for charging tuition, which may be partly based on beliefs and awareness about the university earnings premium. To test whether public support for tuition depends on earnings information, we devise survey experiments in representative samples of the German electorate (N > 15,000). The electorate is divided, with a plurality opposing tuition. Providing information on the university earnings premium raises support for tuition by 7 percentage points, turning the plurality in favor. The opposition-reducing effect persists two weeks after treatment. While there is some evidence of information-based updating of biased beliefs, the effect seems to mainly work through increased salience which triggers reduced consideration of financial constraints when forming preferences for tuition. Information on fiscal costs and unequal access does not affect public preferences. We subject the baseline result to various experimental tests of replicability, robustness, heterogeneity, and consequentiality.