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Inequality and higher education in Italy The distributive impact of fees and subsidies to academics

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  • Daniele Pacifico

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Abstract

In this paper we evaluate in monetary terms the benefits from attending a post-secondary degree in an Italian university. We also propose a microsimulation model that takes into account the spatial distribution of scholarships, fees and other monetary and in-kind services related to the university sector. In this way, it is possible to obtain a good approximation of the real net benefit gained from attending a post-secondary Italian degree and to study its distributive impact on both the users and the whole Italian population. We will provide evidence that the benefits from public higher education have universalistic features. However, the tax-system that is applied by each university is slightly regressive whilst subsidies have a high potential in terms of redistribution, even though the allocated funds are not enough to create any significant effect. Given these results, a new tax-policy is proposed to overcome some of the problems of the present system.

Suggested Citation

  • Daniele Pacifico, 2009. "Inequality and higher education in Italy The distributive impact of fees and subsidies to academics," Center for the Analysis of Public Policies (CAPP) 0069, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
  • Handle: RePEc:mod:cappmo:0069
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    File URL: http://155.185.68.2/campusone/web_dep/CappPaper/Capp_p69.pdf
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    References listed on IDEAS

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    1. Massimo Baldini & Daniele Pacifico, 2006. "Gli effetti distributivi dei trasferimenti in kind: il caso dei servizi educativi e sanitari," Center for the Analysis of Public Policies (CAPP) 0018, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
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    Keywords

    microsimulation; inequality; in-kind benefits; higher education; university; tuition fees; subsidy;

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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