A Simulation of an Income Contingent Tuition Scheme in a Transition Economy
AbstractThe paper takes advantage of exceptionally rich longitudinal data on the universe of labor force participants in Slovenia and simulates the working of an income contingent loan scheme to partly recover tuition costs. The simulations show that under the base variant (where the target cost recovery rate is 20 percent and the contribution rate is 2 percent), 55 percent of individuals would have repaid their entire debt within 20 years; 19 percent of individuals still would not have repaid any of their debt after 20 years; and the "leakage" of the scheme due to uncollected debt would have been 13.5 percent of total lending. By piggybacking on existing administrative systems, implementation costs would be minimal, amounting to less than 0.5 percent of collected debt.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1247.
Length: 36 pages
Date of creation: Aug 2004
Date of revision:
Publication status: published in: Higher Education, 2009, 57 (4), 429-448
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Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Find related papers by JEL classification:
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-08-16 (All new papers)
- NEP-CMP-2004-08-16 (Computational Economics)
- NEP-TRA-2004-08-16 (Transition Economics)
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.:
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William Davidson Institute Working Papers Series
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