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Bridging the Learning Gap in the Market for Higher Education: E-learning and Public Subsidies

  • Adel Ben Youssef

    (Universite de Nice Sophia-Antipolis)

  • Thomas Letexier

    (Universite de Rennes 1)

  • Ludovic Ragni

    (Universite de Nice Sophia-Antipolis)

This article aims at analyzing the adoption patterns which apply on the market for higher education when two types of learning organizations – namely, traditional learning and e-learning organizations – provide educational programs. We focus on the impact of public subsidies to e-learning providers in order to evaluate the conditions under which the learning gap is bridged. A welfare analysis is introduced to estimate the relevance of such ‘pro e-learning’ public policies. Our first results show that public subsidies enable the e-learning organization to provide quality-based and pricing strategies that tend to be similar to those of the brick’n mortar organization. Besides, we find that such short-term policies positively impact on the global level of quality which is provided by both providers. Nevertheless, our welfare analysis underlines contrasted results about the relevance of such short-term public policies.

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Article provided by Institute of Economic Sciences in its journal Economic Analysis.

Volume (Year): 44 (2011)
Issue (Month): 3-4 ()
Pages: 1-11

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Handle: RePEc:ibg:eajour:v:44:y:2011:i:3-4:p:1-11
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  1. McMillan, Robert, 2004. "Competition, incentives, and public school productivity," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1871-1892, August.
  2. Hoyt, William H. & Lee, Kangoh, 1998. "Educational vouchers, welfare effects, and voting," Journal of Public Economics, Elsevier, vol. 69(2), pages 211-228, June.
  3. Schneider, Andrea, 2010. "Redistributive taxation vs. education subsidies: Fostering equality and social mobility in an intergenerational model," Economics of Education Review, Elsevier, vol. 29(4), pages 597-605, August.
  4. Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 1998. "Teachers, Schools, and Academic Achievement," NBER Working Papers 6691, National Bureau of Economic Research, Inc.
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