The Policy Determinants of Investment in Tertiary Education

76 Pages Posted: 3 Oct 2007

See all articles by Joaquim Oliveira Martins

Joaquim Oliveira Martins

OECD; University Paris-Dauphine - PSL

Romina Boarini

Organization for Economic Co-Operation and Development (OECD)

Hubert Strauss

European Investment Bank

Christine de la Maisonneuve

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO)

Clarice Saadi

Sciences Po

Date Written: 2007

Abstract

This paper assesses how policies and institutions affect private returns to invest in tertiary human capital, the ability of individuals to finance this investment and the institutional characteristics of tertiary education systems. Focusing on core tertiary education services, the paper presents new measures of private returns to tertiary education, the institutional setting for supplying tertiary education and the availability of individual financing in OECD countries. Using a panel of 19 countries, the number of new tertiary graduates (a proxy for investment in tertiary education) is regressed on these new proposed measures, as well as other standard determinants of investment in tertiary education. The resulting estimates are used to assess empirically the relative importance of several education, taxation and social policies affecting investment in tertiary education. Several avenues for reform and the trade-offs they present for public policy are discussed.

Keywords: Investment in tertiary education, Returns to education, Supply of tertiary education, Student individual financing systems, Taxation

JEL Classification: I21, I22, I28, J24

Suggested Citation

Oliveira Martins, Joaquim and Boarini, Romina and Strauss, Hubert and de la Maisonneuve, Christine and Saadi, Clarice, The Policy Determinants of Investment in Tertiary Education (2007). OECD Economics Department Working Paper No. 576. Available at SSRN: https://ssrn.com/abstract=1018345 or http://dx.doi.org/10.2139/ssrn.1018345

Joaquim Oliveira Martins (Contact Author)

OECD ( email )

2 Rue André Pascal
75775 Paris Cedex 16
France
+33 1 45 24 88 53 (Phone)

HOME PAGE: http://www.oecd.org/cfe

University Paris-Dauphine - PSL ( email )

PARIS
France

Romina Boarini

Organization for Economic Co-Operation and Development (OECD) ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

Hubert Strauss

European Investment Bank ( email )

98-100, boulevard Konrad Adenauer
Luxembourg, L-2950
Luxembourg
+352437988673 (Phone)
+352437968895 (Fax)

HOME PAGE: http://www.eib.org/efs

Christine De la Maisonneuve

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO) ( email )

2 rue Andre Pascal
Paris Cedex 16, MO 63108
France

Clarice Saadi

Sciences Po ( email )

27, rue Saint-Guillaume
Paris, 75007
France

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