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Investment in Tertiary Education: Main Determinants and Implications for Policy

Author

Listed:
  • Romina Boarini
  • Joaquim Oliveira Martins
  • Hubert Strauss
  • Christine de la Maisonneuve
  • Giuseppe Nicoletti

Abstract

Many OECD countries are aiming to reform their tertiary education (TE) systems. This work explores the determinants of the investment in TE, with a focus on institutional setting of TE systems and private incentives to undertake years of schooling beyond upper-secondary degree level. For this purpose the article first develops estimates of three main drivers of graduation patterns, namely institutional arrangements of TE supply, availability of funding for TE students and private returns to tertiary studies. Second, the article empirically assesses how these three factors affect graduation ratios. Based on this analysis, the article then discusses policy-levers of TE investment and explores possible routes of reform for TE systems in OECD countries. The main findings are as follows: graduation ratios increase with private returns to TE as well with the autonomy and accountability of the supply of education. Lack or insufficient financial help to tertiary students negatively affects graduation ratios. There is a number of policy-levers to stimulate investment in TE. They include policies affecting labour market premia, the degree of flexibility of TE provision and the availability of funding for students. (JEL codes: I21, I22, I28, J24)

Suggested Citation

  • Romina Boarini & Joaquim Oliveira Martins & Hubert Strauss & Christine de la Maisonneuve & Giuseppe Nicoletti, 2008. "Investment in Tertiary Education: Main Determinants and Implications for Policy," CESifo Economic Studies, CESifo Group, vol. 54(2), pages 277-312.
    • Handle: RePEc:oup:cesifo:v:54:y:2008:i:2:p:277-312.
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    File URL: http://hdl.handle.net/10.1093/cesifo/ifn017
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    Cited by:

    1. Romina Boarini, 2009. "Towards better Schools and more Equal Opportunities for Learning in Italy," OECD Economics Department Working Papers 727, OECD Publishing.
    2. P. O. Bugakova & I. A. Prakhov, 2022. "The Characteristics of the University Admission System and Their Infl uence on the Accessibility of Higher Education," University Management: Practice and Analysis, Federal State Autonomous Educational Institution of Higher Education «Ural Federal University named after the first President of Russia B.N.Yeltsin»; Non-Commercial Partnership “University Management: Practice and, vol. 25(4).
    3. Daraio, Cinzia & Bonaccorsi, Andrea & Geuna, Aldo & Lepori, Benedetto & Bach, Laurent & Bogetoft, Peter & F. Cardoso, Margarida & Castro-Martinez, Elena & Crespi, Gustavo & de Lucio, Ignacio Fernandez, 2011. "The European university landscape: A micro characterization based on evidence from the Aquameth project," Research Policy, Elsevier, vol. 40(1), pages 148-164, February.
    4. Fragetta, Matteo, 2010. "Identification in Structural Vector Autoregressions Through Graphical Modelling and Monetary Policy: A Cross-Country Analysis," CELPE Discussion Papers 112, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    5. Frederick van der Ploeg & Reinhilde Veugelers, 2008. "Towards Evidence-based Reform of European Universities," CESifo Economic Studies, CESifo, vol. 54(2), pages 99-120.
    6. Reinhilde Veugelers & Frederick Van der Ploeg, 2008. "Reforming European Universities: Scope for an Evidence-Based Process," CESifo Working Paper Series 2298, CESifo.
    7. Carlos Vieira & Isabel Vieira, 2011. "Determinants and projections of demand for higher education in Portugal," CEFAGE-UE Working Papers 2011_15, University of Evora, CEFAGE-UE (Portugal).
    8. Moris Triventi, 2014. "Higher education regimes: an empirical classification of higher education systems and its relationship with student accessibility," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1685-1703, May.

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    More about this item

    Keywords

    Investment in tertiary education; returns to education; supply of tertiary education;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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