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Public university in Argentina: subsidizing the rich?

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  • Gonzalez Rozada, Martin
  • Menendez, Alicia

Abstract

We analyze some characteristics of the higher education system in Argentina regarding equity and efficiency. Individuals attending the university belong to the top deciles of the income distribution and to relatively highly educated families. Almost 90 percent of the students in tuition-free public universities have higher than median per capita family income and almost 50 percent attended tuition-financed private high schools. We compare these students with those who attend non tuition-free private colleges. Although students in private universities seem to have higher per capita family income, this difference is not large enough to distinguish the two groups after controlling for other variables. These facts imply that there is an implicit transfer to the richest individuals in the society. We argue that equity and efficiency of the system can be improved by charging tuition-fees. Complementary, selective scholarships and loans could be offered to attract the most talented students from poor families.

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Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 21 (2002)
Issue (Month): 4 (August)
Pages: 341-351

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Handle: RePEc:eee:ecoedu:v:21:y:2002:i:4:p:341-351

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Web page: http://www.elsevier.com/locate/econedurev

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References

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  1. Schultz, T. Paul, 1988. "Education investments and returns," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 13, pages 543-630 Elsevier.
  2. Raquel Fernandez & Richard Rogerson, 1994. "On the political economy of education subsidies," Staff Report 185, Federal Reserve Bank of Minneapolis.
  3. J. A. Hausman, 1976. "Specification Tests in Econometrics," Working papers 185, Massachusetts Institute of Technology (MIT), Department of Economics.
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Cited by:
  1. Caner, Asena & Okten, Cagla, 2013. "Higher education in Turkey: Subsidizing the rich or the poor?," Economics of Education Review, Elsevier, vol. 35(C), pages 75-92.
  2. David Flacher & Hugo Harari-Kermadec & Léonard Moulin, 2011. "Contributory education scheme: Theoretical basis and application," Investigaciones de Economía de la Educación volume 6, in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 30, pages 495-502 Asociación de Economía de la Educación.
  3. Andrade, Eduardo C., 2007. "Higher Education: (Almost) Free Tuition vs. Quotas vs. Targeted Vouchers," Insper Working Papers wpe_97, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
  4. Gruber, Lloyd & Kosack, Stephen, 2014. "The Tertiary Tilt: Education and Inequality in the Developing World," World Development, Elsevier, vol. 54(C), pages 253-272.
  5. Liu, Jin-Tan & Chou, Shin-Yi & Liu, Jin-Long, 2006. "Asymmetries in progression in higher education in Taiwan: Parental education and income effects," Economics of Education Review, Elsevier, vol. 25(6), pages 647-658, December.

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