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Financing higher education in an imperfect world

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  • Long, Ngo Van

Abstract

This paper explains why under laissez-faire the financing of higher education is both inefficient and inequitable. It is argued that a government-run scheme of income contingent loans (ICLs) for higher education would achieve superior outcomes. We advocate a refinement of existing ICLs schemes. Following Apps, Long and Rees (2014), the paper proposes a piecewise-linear repayment schedule that serves both equity and efficiency objectives.

Suggested Citation

  • Long, Ngo Van, 2019. "Financing higher education in an imperfect world," Economics of Education Review, Elsevier, vol. 71(C), pages 23-31.
    • Handle: RePEc:eee:ecoedu:v:71:y:2019:i:c:p:23-31
    DOI: 10.1016/j.econedurev.2018.06.004
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    References listed on IDEAS

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    Cited by:

    1. Jonneke Bolhaar & Sonny Kuijpers & Dinand Webbink & Maria Zumbuehl, 2023. "Does replacing grants by income-contingent loans harm enrolment? New evidence from a reform in Dutch higher education," CPB Discussion Paper 451, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Alessandra Casarico & Elena Del Rey & Jose I. Silva, 2022. "The Effect of Child Care Costs on Gender Inequality," CESifo Working Paper Series 9827, CESifo.
    3. Cristina Fleșeriu & Florin Sebastian Duma & Ioan Alin Nistor & Dragoș Păun, 2020. "The Sustainability of International Accreditations and Their Impact on Students’ Choices in Selecting the Universities," Sustainability, MDPI, vol. 12(16), pages 1-19, August.
    4. Alessandra Casarico & Elena Del Rey & Jose I. Silva, 2023. "Child care costs, household liquidity constraints, and gender inequality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1461-1487, July.
    5. Camilo Andrés Garzón-Correa & Atilio Bustos-González & Melisa López-Hernández & Eduardo Calderón & Oscar Cespedes, 2022. "Challenges and Difficulties in Implementing an Income-Contingent-Financing Model in Higher Education in Colombia," Sustainability, MDPI, vol. 14(13), pages 1-14, July.

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