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

Listed author(s):
  • Adel Ben Youssef

    ()

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - CNRS - Centre National de la Recherche Scientifique)

  • Thomas Le Texier

    (CREM - Centre de Recherche en Economie et Management - UNICAEN - Université Caen Normandie - UR1 - Université de Rennes 1 - CNRS - Centre National de la Recherche Scientifique)

  • Ludovic Ragni

    ()

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - CNRS - Centre National de la Recherche Scientifique)

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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File URL: https://halshs.archives-ouvertes.fr/halshs-00998308/document
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Paper provided by HAL in its series Post-Print with number halshs-00998308.

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Date of creation: 2011
Publication status: Published in Economic Analysis (Belgrade), 2011, 3-4 (45), pp.1-11
Handle: RePEc:hal:journl:halshs-00998308
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00998308
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  1. Steven G. Rivkin & Eric A. Hanushek & John F. Kain, 2005. "Teachers, Schools, and Academic Achievement," Econometrica, Econometric Society, vol. 73(2), pages 417-458, 03.
  2. 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.
  3. Hoyt, William H. & Lee, Kangoh, 1998. "Educational vouchers, welfare effects, and voting," Journal of Public Economics, Elsevier, vol. 69(2), pages 211-228, June.
  4. McMillan, Robert, 2004. "Competition, incentives, and public school productivity," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1871-1892, August.
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