Advanced Search
MyIDEAS: Login

Higher Education Funding Reforms in England: The Distributional Effects and the Shifting Balance of Costs

Contents:

Author Info

  • Lorraine Dearden
  • Emla Fitzsimons
  • Alissa Goodman
  • Greg Kaplan

Abstract

This article undertakes a quantitative analysis of substantial reforms to the system of higher education (HE) finance in England, first announced in 2004 and revised in 2007. The reforms introduced deferred fees for HE, payable by graduates through the tax system via income-contingent repayments on loans subsidised by the government. The article uses lifetime earnings simulated by the authors to consider the likely distributional consequences of the reforms for graduates. It also considers the costs of the reforms for taxpayers, and how the reforms are likely to shift the balance of funding for HE between the public and private sectors. Copyright 2008 The Author(s). Journal compilation Royal Economic Society 2008.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0297.2007.02118.x
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 118 (2008)
Issue (Month): 526 (02)
Pages: F100-F125

as in new window
Handle: RePEc:ecj:econjl:v:118:y:2008:i:526:p:f100-f125

Contact details of provider:
Postal: Office of the Secretary-General, School of Economics and Finance, University of St. Andrews, St. Andrews, Fife, KY16 9AL, UK
Phone: +44 1334 462479
Email:
Web page: http://www.res.org.uk/
More information through EDIRC

Order Information:
Web: http://www.blackwellpublishers.co.uk/asp/journal.asp?ref=0013-0133

Related research

Keywords:

Other versions of this item:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Chen, Xiaohong & Fan, Yanqin & Tsyrennikov, Viktor, 2006. "Efficient Estimation of Semiparametric Multivariate Copula Models," Journal of the American Statistical Association, American Statistical Association, vol. 101, pages 1228-1240, September.
  2. Bénabou, Roland, 2000. "Tax And Education Policy In A Heterogeneous Agent Economy: What Levels Of Redistribution Maximize Growth And Efficiency?," CEPR Discussion Papers 2446, C.E.P.R. Discussion Papers.
  3. De Fraja, Gianni, 2002. "The Design of Optimal Education Policies," Review of Economic Studies, Wiley Blackwell, vol. 69(2), pages 437-66, April.
  4. Keane, Michael P & Wolpin, Kenneth I, 1997. "The Career Decisions of Young Men," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 473-522, June.
  5. Bruce Chapman, 2005. "Income Contingent Loans for Higher Education: International Reform," CEPR Discussion Papers 491, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  6. Fernandez, Raquel & Rogerson, Richard, 1995. "On the Political Economy of Education Subsidies," Review of Economic Studies, Wiley Blackwell, vol. 62(2), pages 249-62, April.
  7. Heckman, James J & Lochner, Lance & Taber, Christopher, 1998. "General-Equilibrium Treatment Effects: A Study of Tuition Policy," American Economic Review, American Economic Association, vol. 88(2), pages 381-86, May.
  8. Levhari, David & Weiss, Yoram, 1974. "The Effect of Risk on the Investment in Human Capital," American Economic Review, American Economic Association, vol. 64(6), pages 950-63, December.
  9. Eaton, Jonathan & Rosen, Harvey S, 1980. "Taxation, Human Capital, and Uncertainty," American Economic Review, American Economic Association, vol. 70(4), pages 705-15, September.
  10. David Greenaway & Michelle Haynes, 2003. "Funding Higher Education in The UK: The Role of Fees and Loans," Economic Journal, Royal Economic Society, vol. 113(485), pages F150-F166, February.
  11. Andrew J. Patton, 2006. "Estimation of multivariate models for time series of possibly different lengths," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(2), pages 147-173.
  12. Andrew J. Patton, 2006. "Modelling Asymmetric Exchange Rate Dependence," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(2), pages 527-556, 05.
  13. Kodde, David A, 1986. "Uncertainty and the Demand for Education," The Review of Economics and Statistics, MIT Press, vol. 68(3), pages 460-67, August.
  14. Nerlove, Marc L, 1975. "Some Problems in the Use of Income-contingent Loans for the Finance of Higher Education," Journal of Political Economy, University of Chicago Press, vol. 83(1), pages 157-83, February.
Full references (including those not matched with items on IDEAS)

Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Human capital policies and inequality in recessions’ times
    by laurence-df in OFCE le blog on 2012-12-20 10:52:08
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Beare, Brendan, 2008. "Copulas and Temporal Dependence," University of California at San Diego, Economics Working Paper Series qt2880q2jq, Department of Economics, UC San Diego.
  2. Nicholas Barr, 2009. "Financing higher education: lessons from economic theory and reform in England," LSE Research Online Documents on Economics 30873, London School of Economics and Political Science, LSE Library.
  3. Lorraine Dearden & Emla Fitzsimons & Gill Wyness, 2011. "The Impact of Tuition Fees and Support on University Participation in the UK," CEE Discussion Papers 0126, Centre for the Economics of Education, LSE.
  4. Beare, Brendan K., 2009. "Copulas and Temporal Dependence," University of California at San Diego, Economics Working Paper Series qt87p829d4, Department of Economics, UC San Diego.
  5. Neil Shephard, 2013. "The actual financing costs of English higher education student loans," Economics Series Working Papers 2013-W06, University of Oxford, Department of Economics.
  6. McGuinness, Seamus & Bergin, Adele & Kelly, Elish & McCoy, Selina & Smyth, Emer & Timoney, Kevin, 2012. "A Study of Future Demand for Higher Education in Ireland," Research Series, Economic and Social Research Institute (ESRI), number RS30.
  7. Migali, Giuseppe, 2006. "Funding Higher Education and Wage Uncertainty : Income Contingent Loan versus Mortgage Loan," The Warwick Economics Research Paper Series (TWERPS) 775, University of Warwick, Department of Economics.
  8. Nicholas Barr & Alison Johnston, 2010. "Interest subsidies on student loans: a better class of drain," LSE Research Online Documents on Economics 28287, London School of Economics and Political Science, LSE Library.
  9. Callan, Tim & Smeeding, Timothy M. & Tsakloglou, Panos, 2008. "Short-Run Distributional Effects of Public Education Transfers to Tertiary Education Students in Seven European Countries," IZA Discussion Papers 3557, Institute for the Study of Labor (IZA).
  10. Lorraine Dearden & Emla Fitzsimons & Gill Wyness, 2013. "Money for nothing: estimating the impact of student aid on participation in Higher Education," DoQSS Working Papers 13-04, Department of Quantitative Social Science - Institute of Education, University of London.
  11. Peter Dolton & Li Lin, 2011. "From Grants to Loans and Fees: The Demand for Post-Compulsory Education in England and Wales from 1955 to 2008," CEE Discussion Papers 0127, Centre for the Economics of Education, LSE.
  12. Darragh Flannery & Cathal O’Donoghue, 2011. "The Life-cycle Impact of Alternative Higher Education Finance Systems in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 42(3), pages 237–270.
  13. Nicholas Barr & Alison Johnston, 2010. "Interest Subsidies on Student Loans: A Better Class of Drain," CEE Discussion Papers 0114, Centre for the Economics of Education, LSE.
  14. Cormac O'Dea & Ian Preston, 2012. "The distributional impact of public spending in the UK," IFS Working Papers W12/06, Institute for Fiscal Studies.
  15. Neil Shephard, 2013. "Inference and forecasting in the age-period-cohort model with unknown exposure with an application to mesothelioma mortality," Economics Papers 2013-W06, Economics Group, Nuffield College, University of Oxford.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ecj:econjl:v:118:y:2008:i:526:p:f100-f125. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.