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Government Intervention in Postsecondary Education in Bulgaria

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  • Bonev, Pavlin

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.

Suggested Citation

  • Bonev, Pavlin, 2013. "Government Intervention in Postsecondary Education in Bulgaria," MPRA Paper 52669, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:52669
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    File URL: https://mpra.ub.uni-muenchen.de/52669/1/MPRA_paper_52669.pdf
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    References listed on IDEAS

    as
    1. Branko Milanovic, 1999. "Explaining the increase in inequality during transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 299-341, July.
    2. John Micklewright, 1999. "Education, inequality and transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 343-376, July.
    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, vol. 88(9-10), pages 1667-1695, August.
    4. James J. Heckman & Jeffrey Smith & Nancy Clements, 1997. "Making The Most Out Of Programme Evaluations and Social Experiments: Accounting For Heterogeneity in Programme Impacts," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 487-535.
    5. Federico S. Mandelman & Francesco Zanetti, 2008. "Technology shocks, employment, and labor market frictions," FRB Atlanta Working Paper 2008-10, Federal Reserve Bank of Atlanta.
    6. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    7. Joshua C. Hall, 2006. "Positive Externalities and Government Involvement in Education," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 22(Spring 20), pages 165-175.
    8. Jo Blanden, 2013. "Cross-Country Rankings In Intergenerational Mobility: A Comparison Of Approaches From Economics And Sociology," Journal of Economic Surveys, Wiley Blackwell, vol. 27(1), pages 38-73, February.
    9. Dan Andrews & Andrew Leigh, 2009. "More inequality, less social mobility," Applied Economics Letters, Taylor & Francis Journals, vol. 16(15), pages 1489-1492.
    10. Ozkan Eren, 2009. "Ability, Schooling Inputs and Earnings: Evidence from the NELS," Working Papers 0906, University of Nevada, Las Vegas , Department of Economics, revised Aug 2009.
    11. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281-281.
    12. Jack High, 1985. "State Education: Have Economists Made a Case?," Cato Journal, Cato Journal, Cato Institute, vol. 5(1), pages 305-323, Spring/Su.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

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

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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