Tuition Increases May Increase the Income Inequality

The tuition of UCLA has increased huge amount since 2008. Not only UCLA, because of the budget cut due to the economic recession, most American universities have increased their tuitions. This forces many students who cannot afford tuition to drop out. Demonstrated as the lecture, increase in educated workforce decreases relative wage of high skilled which means reducing the income inequality. However, more and more people will choose to be low skilled workers due to tuition increases. The relative wages of high skilled workers will increase. Therefore, the income gap between skilled and low skilled workers will develop.

http://www.dailybruin.com/index.php/article/2011/11/faces_of_protest_bruin_activists_share_stories_on_occupy_ucla