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Government Intervention in Postsecondary Education in Bulgaria

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  • Bonev, Pavlin
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    Abstract

    In this paper, based on report published by the Bulgarian National Audit Office with reference to public university graduates entering the labor market, I try to outline possible ways to overcome labor market failure problem forced by inefficient public university funding. It is the Bulgarian Government and in particular Ministry of Education, Youth and Science that perform policy to contribute to achieve postsecondary labor market equilibrium. Based on the report findings, I argue that the subsidies allocated for public universities are quite high compared to the funds adopted for health services for example. It is not the high acceptance rate that are being achieved, but the admission quotas that are being defined by universities. I consider this as a precondition for the labor market failure problem. Thus supply and demand on specialists with university degree on labor market is unbalanced. This creates risk for inadequate managerial decisions when developing strategies and policies in the fields of labor market and university education. As a result labor market is saturated with specialists with some occupations, and shortage with others.

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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 52669.

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    Date of creation: 21 Dec 2013
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    Handle: RePEc:pra:mprapa:52669

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    Keywords: public university funding; labor market failure problem; positive externalitites; postsecondary education;

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    1. John Micklewright, 1999. "Education, inequality and transition," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 7(2), pages 343-376, July.
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    3. Milligan, Kevin & Moretti, Enrico & Oreopoulos, Philip, 2004. "Does education improve citizenship? Evidence from the United States and the United Kingdom," Journal of Public Economics, Elsevier, Elsevier, vol. 88(9-10), pages 1667-1695, August.
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    7. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 66, pages 281.
    8. Branko Milanovic, 1999. "Explaining the increase in inequality during transition," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 7(2), pages 299-341, July.
    9. Jack High, 1985. "State Education: Have Economists Made a Case?," Cato Journal, Cato Journal, Cato Institute, Cato Journal, Cato Institute, vol. 5(1), pages 305-323, Spring/Su.
    10. Ozkan Eren, 2009. "Ability, Schooling Inputs and Earnings: Evidence from the NELS," Working Papers, University of Nevada, Las Vegas , Department of Economics 0906, University of Nevada, Las Vegas , Department of Economics, revised Aug 2009.
    11. Joshua C. Hall, 2006. "Positive Externalities and Government Involvement in Education," Journal of Private Enterprise, The Association of Private Enterprise Education, The Association of Private Enterprise Education, vol. 22(Spring 20), pages 165-175.
    12. Jo Blanden, 2013. "Cross-Country Rankings In Intergenerational Mobility: A Comparison Of Approaches From Economics And Sociology," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 27(1), pages 38-73, 02.
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