Category: fairness

  • How social mobility in HE can reproduce inequality – and what to do about it

    How social mobility in HE can reproduce inequality – and what to do about it

    by Anna Mountford-Zimdars, Louise Ashley, Eve Worth, and Chris Playford

    Higher education has become the go-to solution for social inequality over the past three decades. Widening access and enhancing graduate outcomes have been presented as ways to generate upward mobility and ensure fairer life chances for people from all backgrounds. But what if the very ecosystem designed to level the playing field also inadvertently helps sustain the very inequalities we are hoping to overcome? 

    Social mobility agendas appear progressive but are often regressive in practice. By focusing on the movement of individuals rather than structural change, they leave wealth and income disparities intact. A few people may rise, but the wider system remains unfair – but now dressed up with a meritocratic veneer. We explore these issues in our new article in the British Journal of Sociology, ‘Ambivalent Agents: The Social Mobility Industry and Civil Society under Neoliberalism in England’. We examined the role of the UK’s ‘social mobility industry’: charities, foundations, and third-sector organisations primarily working with universities to identify ‘talented’ young people from less advantaged backgrounds and help them access higher education or elite careers. We were curious – are these organisations transforming opportunity structures and delivering genuine change, or do they help stabilise the present system? 

    The answer to this question is of course complex but, in essence, we found the latter. Our analysis of 150 national organisations working in higher education since the early 1990s found that organisations tend to reflect the individualistic approach outlined above and blend critical rhetoric about inequality with delivery models that are funder-compatible, metric-led and institutionally convenient. Thus – and we expect unintentionally on part of the organisations – they often perform inclusion of ‘talent’ without asking too many uncomfortable structural questions about the persistence and reproduction of unequal opportunities. 

    We classified organisations in a five-part typology. Most organisations fell into the category of Pragmatic Progressives: committed to fairness but shaped by funder priorities, accountability metrics, and institutional convenience. A smaller group acted as Structural Resistors, pushing for systemic change. Others were System Conformers, largely reproducing official rhetoric. The Technocratic deliverers were most closely integrated with the state, often functioning as contracted agents with managerial, metrics-focused delivery models.   Finally, Professionalised Reformers seek reform through evidence-based programmes and advocacy, often with a focus on elite education and professions.

    This finding matters beyond higher education. Civil society – the world of charities, voluntary groups, and associations – has long been seen as the sphere where resistance to inequality might flourish. Yet our findings show that many organisations are constrained or co-opted into protecting the status quo by limited budgets, demanding funders, and constant requirements to demonstrate ‘impact’. Our point is not to disparage gains or to criticise the intentions of the charity sector but to push for honest and genuine change. 

    Labour’s new Civil Society Covenant, which promises to strengthen voluntary organisations and reduce short-termism, could create opportunities. But outsourcing responsibility for social goods to arm’s-length actors also risks producing symbolic reforms that celebrate individual success stories without changing the odds for the many. If higher education is to deliver genuine fairness, we must distinguish between performing fairness for a few and redistributing opportunities for the many. We thus want to conclude by suggesting three practical actions for universities, access and participation teams, and regulators such as the Office for Students.

    1. Audit for Ambivalence 

    Using our typology, do you find you are working with a mix of organisations, or mainly those focused on individuals? (Please contact us for accessing our coding framework to support your institutional or regional audits.) 

    • Rebalance activity towards structural levers

    Continue high-quality outreach, but, where possible, shift resources towards systemic interventions such as contextual admissions with meaningful grade floors, strong maintenance support, foundation pathways with guaranteed progression and fair, embedded work placements 

    Ask the regulator to measure structural outcomes as well as individual ones, at sector and regional levels. When commissioning work, ask for participatory governance and community accountability and measure that too.

    We believe civil-society partnerships can play a vital role – but not if they become the sole heavy-lifter or metric of success. Universities are well positioned to embrace structural levers, protect space for critique, and hold themselves accountable for distributional outcomes. If this happens, the crowded charity space around social mobility could become a vibrant counter-movement for genuine change to opportunities and producing fairness rather than a prop for maintaining an unequal status quo. 

    In terms of research, our next step is speaking directly to people working in the ‘social mobility industry.’ Do they/you recognise the tensions we highlight? How do they navigate them? Have we fairly presented their work? We look forward to continuing the discussion on this topic and how to enhance practice for transformative change.

    Anna Mountford-Zimdars is a Professor in Education at the University of Exeter.

    Louise Ashley is Associate Professor in the School of business and management at Queen Mary University London.

    Eve Worth is a Lecturer in History at the University of Exeter.

    Christopher James Playford is a Senior Lecturer in Sociology at the University of Exeter.

    Author: SRHE News Blog

    An international learned society, concerned with supporting research and researchers into Higher Education

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  • Some thoughts on fairness and student loans

    Some thoughts on fairness and student loans

    With the Comprehensive Spending Review due next Wednesday, I thought it might be worth making some general points about student loans (in anticipation of potential changes to repayment thresholds and other parameters).

    I do not think student loans are a good vehicle for redistributive measures.

    As I told a couple of parliamentary committees in 2017, the current redistributive aspects are an accidental function of the decision to lower the financial reporting discount rate for student loans from RPI plus 2.2 percent to RPI plus 0.7. Such a downwards revision elevates the value of future cash repayments and in this case it meant that the payments projected to be received from higher earners began to exceed the value of the initial cash outlay.

    The caveat here: in the eyes of government. That is the government’s discount rate, not necessarily yours. One of the reasons I favour zero real interest rates over other options is that it simplifies considerations of the future value of payments made from the individual borrower’s perspective.

    Originally, student loans were proposed as a way to eliminate a middle class subsidy – free tuition – and have now become embedded as a way to fund mass, but not universal, provision.

    I believe that if you are concerned about redistribution, then it is best to concentrate on the broader tax system, rather than focusing solely on the progressivity or otherwise of student loans. You can see from the original designs for the 2012 changes that the idea of the higher interest rates were meant to make the loan scheme mimic a proportionate graduate tax and eliminate the interest rate subsidy enjoyed by higher earners on older loans. The original choice of “post-2012” student loan interest rates of RPI + 0 to 3 percentage points was meant to match roughly the old discount rate of RPI plus 2.2%. Again, see my submission to the Treasury select committee for more detail.

    I will just set out a few illustrative examples here as to why some of the debates about fairness in relation to repayment terms need a broader lens.

    It is often observed that two graduates on the same salaries are left with different disposable incomes, if one has benefited from their parents, say, paying their tuition fees and costs of living during study so that they don’t lose 9 per cent of their salary over the repayment threshold (just under £20,000 per year for pre-2012 loans; just over £27,000 for post-2012 loans).

    That’s clearly the case.

    But the parents had to pay c. £50,000 upfront to gain that benefit for their child. And it is by no means certain that option is the best use of such available money. Only a minority of borrowers go on to repay the equivalent of what they borrowed using the government’s discount rate, and as an individual you should probably have a higher discount rate than the government. You also forego the built-in death and disability insurance in student loans.

    Payment upfront is therefore a gamble, one where the odds differ markedly for men and women. (See analyses by London Economics and Institute for Fiscal Affairs for the breakdowns on the different percentages of men and women who do pay the equivalent of more than they borrowed.)

    If a family has the £50,000 spare (certainly don’t borrow it from elsewhere), then the following options are likely more sensible:

    • pledge to cover your child’s rent until the £50,000 runs out: this allows student to avoid taking on excessive paid work during study and will boost their disposable income afterwards;
    • provide the £50,000 as a deposit towards a house purchase;
    • even put the £50,000 in a pot to cover the student loan repayments as they arise;
    • etc.

    In two of those cases, you’ll have a useful contingency fund too.

    All strike me as better options than eschewing the government-subsidised loan scheme.

    Moreover, those three options remain in the event of a graduate tax or the abolition of tuition fees.

    That fundamental unfairness – family wealth – isn’t addressed by changing the HE funding system. (I write as someone who helped craft the HE pledges in Labour’s 2015 and 2017 manifestos).

    In many ways, the government prefers people to pay upfront because it reduces the immediate cash demand.  From that perspective, upfront payment works as a form of voluntary wealth taxation (at least in the short-run). Arguably, those who pay upfront have been taxed at the beginning and are gambling on outcomes that mean that future “rebates” exceed the original payment for their children.

    Perhaps this line of reasoning opens up debates about means-testing fees and emphasises the need to restore maintenance grants … but really it points to harder problems regarding the taxation of intergenerational transfers and disposable wealth.

    I am not a certified financial advisor so comments above are simply my opinions. You should not base investment decisions on them.

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