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Lifecycle Impact of Alternative Higher Education Finance Systems in Ireland

Author

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  • Flannery, Darragh

    (University of Limerick)

  • O'Donoghue, Cathal

    (National University of Ireland, Galway)

Abstract

With increasing numbers of young people participating in higher education in Ireland and a heavy reliance of higher education institutions on state funding, the introduction of an alternative finance system for Ireland has been muted over the past number of years. However, no study has been conducted to gauge the potential impact of such measures. In this chapter we utilize a dynamic microsimulation model developed for Ireland to simulate the impact of both an income contingent loan system (ICL) and a graduate tax system from a fiscal and redistributional viewpoint and to analyze the repayment length under the former system. Our results suggest that an ICL system would is more equitable, while the graduate tax system would be a better alternative from a fiscal viewpoint. The results also illustrate the important of the interest rate attached to any future student loan system within Ireland from a fiscal viewpoint.

Suggested Citation

  • Flannery, Darragh & O'Donoghue, Cathal, 2011. "Lifecycle Impact of Alternative Higher Education Finance Systems in Ireland," IZA Discussion Papers 5626, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5626
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    References listed on IDEAS

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    Cited by:

    1. Higgins, Tim & Sinning, Mathias, 2013. "Modeling income dynamics for public policy design: An application to income contingent student loans," Economics of Education Review, Elsevier, vol. 37(C), pages 273-285.
    2. Chapman, Bruce & Doris, Aedín, 2019. "Modelling higher education financing reform for Ireland," Economics of Education Review, Elsevier, vol. 71(C), pages 109-119.
    3. repec:hal:journl:dumas-00909926 is not listed on IDEAS
    4. 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, June.

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    More about this item

    Keywords

    higher education financing; graduate tax; income contingent loan; dynamic microsimulation;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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