Degree-level education can offer a route out of poverty, for graduates as well as their children. To reduce both cross-sectional and intergenerational inequality, improving public schools and subsidising college tuition fees are both viable policy options. But the optimal approach remains open to debate. This column suggests that a combination of the two reforms can be effective. In fact, the two programmes are complimentary: combining better school funding with tuition fee subsidies provides the most significant welfare gains. This dual policy approach is also self-financing, allowing policymakers to reap the economic benefits of higher human capital over the long run.
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