Higher Education Investment, Inequality, and Admission Barriers

Introduction

The economic situation in most countries is in decline as a result of several environmental factors. The level of poverty in numerous countries has become a problem not only for those countries themselves, but also for wealthier nations that must invest in helping poor regions improve their situation. The number of people living below subsistence levels is increasing, which means that something must be done to redress the situation.

The answer to the problem of promoting economic growth and eradicating poverty appears to be higher education. Whenever state governments present their long-term strategies for economic development, they consistently identify investments in higher education as the most important tool for generating a national return. In other words, they treat higher education as the key determinant of economic development.

This is because individuals with higher education obtain better-paying jobs. Their income increases, and so does their spending power. By purchasing more goods and services, they help sustain and grow more companies, which in turn creates more jobs. The state budget also benefits from higher tax revenues collected from these companies and individuals. Unemployment levels fall, average salaries rise, and all of this is facilitated by higher education.

However, the solution is not as straightforward as it sounds. Only a limited number of individuals currently have access to higher education — far fewer than would be needed to meaningfully improve the economic situation in most countries. Inequality and barriers in college and university admissions account for this low participation rate. These barriers are largely rooted in the social and demographic backgrounds of applicants. Tuition fees at many colleges and universities are simply too high for most prospective students to afford. Some benefit from scholarships, which are often granted on the basis of athletic merit rather than academic need. It is therefore important to understand how the situation can be improved in order to allow a larger share of the population to benefit from higher education.

Literature Review

The issue of investments in higher education as a strategy for improving economies, and the barriers that undermine this strategy, is addressed by a substantial body of scholarship. The American Sociological Review published a 2009 study by Sigal Alon of Tel Aviv University examining the evolution of class inequality in higher education, with a focus on competition, exclusion, and adaptation. The study provides important insights into how the education system significantly intensifies competition for higher education access. While this may appear beneficial — ensuring that only the strongest students gain entry — it is problematic in the medium and long term. Only a small proportion of people ultimately become higher education students, and that proportion is insufficient to produce meaningful improvements in national economies or reductions in global poverty.

The study also documents how a large number of applicants are excluded from college and university admissions because their social status does not allow them to meet the costs of higher education (Alon, 2009). Some of these individuals may possess the intellectual capacity to compete with any student, yet they are denied the opportunity because they cannot afford tuition and cannot access scholarships.

This is precisely where governments should act. Investments in higher education are necessary here: governments should allocate a portion of their budgets to increasing the number of admission places that underprivileged individuals can access through scholarships. The challenge is that the results of such investments are not visible in the short term, which makes it difficult for many people — including policymakers — to appreciate that investments in higher education drive economic development. Most people want to see results quickly, and higher education cannot deliver that. However, the returns from these investments are durable and provide higher long-term national gains compared to investments that yield faster but less lasting results.

Inequalities in higher education are not confined to the United States. In India, social differences are reflected in the caste system, and these differences between social strata are profound. Research by Desai and Kulkarni addresses this problem directly. According to their study, "Indian society suffers from substantial inequalities in education, employment, and income based on caste and ethnicity. Compensatory or positive discrimination policies reserve 15% of the seats in institutions of higher education and state and central government jobs for people of the lowest caste, the Scheduled Caste; 7.5% of the seats are reserved for the Scheduled Tribe" (Desai & Kulkarni, 2008). However, positive discrimination does not appear to fully resolve the problem of inequality. By intervening in this way, the state risks creating a permanent dependency rather than enabling disadvantaged groups to develop independently. This means the state must continuously ensure that these groups receive certain benefits rather than building conditions that allow them to improve their situation on their own terms.

Hispanics in the United States also face significant obstacles in accessing higher education. Marta Tienda of Princeton University addressed this issue in a conference paper examining the risks, opportunities, and future courses of action regarding Hispanics and educational inequality (Tienda, 2009). This work demonstrates that social status is not the only barrier preventing individuals from accessing higher education — race is another important factor. Understanding the full complexity of educational inequality is therefore essential to addressing it effectively.

Conclusion

Tienda, M. (2009). Hispanicity and educational inequality: Risks, opportunities, and the nation's future. ETS.