Elgar original reference
Edited by Geraint Johnes and Jill Johnes
David Greenaway and Michelle Haynes 1 Introduction Over the last 20 years of the 20th century there was a remarkable increase in participation in higher education in a number of OECD and non-OECD countries (for details, see OECD, 2002). In the case of the former, this was partly demand-driven, with key factors being increased female participation and increasing private rates of return to a ﬁrst degree. In some countries, it was also supply-driven, with policy initiatives to increase the number of universities and increase publicly funded places to support development of the ‘knowledge-based economy’. One of the key debates triggered by increased participation is how to pay for it.1 Governments have become less capable of ﬁnancing higher education expansion owing to increased competition for public funds. This has triggered two questions: should the beneﬁciaries of higher education make a larger contribution to the costs of provision and, if the answer to this question is ‘yes’, how and when should they make that contribution? In section 2 we review the broad patterns in participation and higher education funding across OECD countries. Any argument that beneﬁciaries should make a greater contribution to tuition costs relies on a demonstration that they would be better oﬀ than otherwise as a result of having experienced higher education. There is extensive evidence on this topic which we review brieﬂy in section 3. Section 4 assesses a range of funding options for higher education. Section 5 examines some of the recent innovations by OECD...
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