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The Policy Determinants of Investment in Tertiary Education

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Author Info
Joaquim Oliveira Martins
Romina Boarini
Hubert Strauss
Christine de la Maisonneuve
Clarice Saadi ()

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Abstract

This paper assesses how policies and institutions affect private returns to invest in tertiary human capital, the ability of individuals to finance this investment and the institutional characteristics of tertiary education systems. Focusing on core tertiary education services, the paper presents new measures of private returns to tertiary education, the institutional setting for supplying tertiary education and the availability of individual financing in OECD countries. Using a panel of 19 countries, the number of new tertiary graduates (a proxy for investment in tertiary education) is regressed on these new proposed measures, as well as other standard determinants of investment in tertiary education. The resulting estimates are used to assess empirically the relative importance of several education, taxation and social policies affecting investment in tertiary education. Several avenues for reform and the trade-offs they present for public policy are discussed.

L'impact des politiques économiques sur l'investissement en éducation supérieure
Cette étude examine comment les politiques économiques et les institutions affectent le rendement privé de l’éducation supérieure, la possibilité pour les individus de financer cet investissement et les caractéristiques institutionnelles de l’offre d’enseignement supérieur. Se concentrant sur les services de l’éducation supérieure proprement dite, l’étude présente des nouvelles mesures des rendements privés de l’éducation supérieure, le contexte institutionnel de l’offre d’enseignement supérieur et la disponibilité de financement individuel pour les pays de l’OCDE. Utilisant un panel sur 19 pays, le nombre harmonisé de nouveaux diplômés (une approximation de l’investissement dans l’enseignement supérieur) est régressé sur ces nouvelles mesures ainsi que sur d’autres déterminants standards de l’investissement en éducation supérieure. Les estimations qui en résultent sont utilisées pour évaluer empiriquement l’importance relative des différentes politiques ayant trait à l’éducation, à la fiscalité ou dans le domaine social et ayant un impact sur l’investissement en enseignement supérieur. Plusieurs options de réforme et les arbitrages qu’elles représentent pour la politique économique sont discutées.

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Publisher Info
Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 576.

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Date of creation: 24 Sep 2007
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Handle: RePEc:oec:ecoaaa:576-en

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Related research
Keywords: Investment in tertiary education Returns to education Supply of tertiary education Student individual financing systems and Taxation Investissement en éducation supérieure Rendements de l’éducation Offre d’éducation supérieure Financement individuel pour les étudiants et fiscalité

Find related papers by JEL classification:
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
I22 - Health, Education, and Welfare - - Education - - - Educational Finance
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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Cited by:
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  1. David T. Coe & Elhanan Helpman & Alexander W. Hoffmaister, 2008. "International R&D Spillovers and Institutions," IMF Working Papers 08/104, International Monetary Fund. [Downloadable!]
    Other versions:
  2. Felicity C Barker & Robert A Buckle & Robert W St Clair, 2008. "Roles of Fiscal Policy in New Zealand," Treasury Working Paper Series 08/02, New Zealand Treasury. [Downloadable!]
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