IDEAS home Printed from https://ideas.repec.org/p/ieb/wpaper/2013-6-doc2013-34.html
   My bibliography  Save this paper

Financing higher education: a contributory scheme

Author

Listed:
  • David Flacher

    () (CEPN - CNRS (UMR 7234) Université Paris 13)

  • Hugo Harari-Kermadec

    () (IDHE - CNRS (UMR 8533) ENS Cachan)

  • Léonard Moulin

    () (CEPN - CNRS (UMR 7234) Université Paris 13)

Abstract

In this paper, we study the higher education financing based on the classical contributory versus self-funded pension funding scheme. We provide a brief discussion of how a system based on student debt can be seen ’funded’ and why it fails to ensure equity and efficiency and funding for the longer term. We also define a contributory financing scheme for higher education based on income tax and social security contributions, and study its strengths and weaknesses. By contributory, we mean a scheme that ensures free access to university, providing for students’ expenses and the costs of research and teaching. We show that such a system would be efficient and equitable, and we discuss under what conditions it would be efficient. We show also that it would prevent polarization in the higher education system. We conclude with an implementation of our contributory financing scheme in the case of France (it increases university funding by €5bn and provides €19bn for students’ expenditure) and illustrate the effect of such a scheme on some typical households.

Suggested Citation

  • David Flacher & Hugo Harari-Kermadec & Léonard Moulin, 2013. "Financing higher education: a contributory scheme," Working Papers 2013/34, Institut d'Economia de Barcelona (IEB).
  • Handle: RePEc:ieb:wpaper:2013/6/doc2013-34
    as

    Download full text from publisher

    File URL: http://www.ieb.ub.edu/phocadownload/documentostrabajo/doc2013-34.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Gruber, Jonathan, 1997. "The Incidence of Payroll Taxation: Evidence from Chile," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 72-101, July.
    2. Barr, Nicholas, 1993. "Alternative Funding Resources for Higher Education," Economic Journal, Royal Economic Society, vol. 103(418), pages 718-728, May.
    3. Pierre Courtioux, 2009. "Peut-on financer l'éducation du supérieur de manière plus équitable ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00370094, HAL.
    4. Magali Beffy & Denis Fougère & Arnaud Maurel, 2009. "L’impact du travail salarié des étudiants sur la réussite et la poursuite des études universitaires," Économie et Statistique, Programme National Persée, vol. 422(1), pages 31-50.
    5. Erica Field, 2009. "Educational Debt Burden and Career Choice: Evidence from a Financial Aid Experiment at NYU Law School," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 1-21, January.
    6. Haroon Chowdry & Lorraine Dearden & Alissa Goodman & Wenchao Jin, 2012. "The Distributional Impact of the 2012–13 Higher Education Funding Reforms in England," Fiscal Studies, Institute for Fiscal Studies, vol. 33(2), pages 211-235, June.
    7. Barr, Nicholas, 1993. "Alternative funding resources for higher education," LSE Research Online Documents on Economics 280, London School of Economics and Political Science, LSE Library.
    8. Robert Gary-Bobo & Alain Trannoy, 2005. "Faut-il augmenter les droits d'inscription à l'université ?," Revue Française d'Économie, Programme National Persée, vol. 19(3), pages 189-237.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Universal Autonomy Allowance; contributory scheme; funded education scheme; financing higher education; equity; efficiency;

    JEL classification:

    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ieb:wpaper:2013/6/doc2013-34. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/iebubes.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.