Investment in Tertiary Education: Main Determinants and Implications for Policy

Posted: 4 Jul 2008

See all articles by Romina Boarini

Romina Boarini

Organization for Economic Co-Operation and Development (OECD)

Joaquim Oliveira Martins

OECD; University Paris-Dauphine - PSL

Hubert Strauss

European Investment Bank

Christine de la Maisonneuve

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

Giuseppe Nicoletti

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

Date Written: June 2008

Abstract

Many OECD countries are aiming to reform their tertiary education (TE) systems. This work explores the determinants of the investment in TE, with a focus on institutional setting of TE systems and private incentives to undertake years of schooling beyond upper-secondary degree level. For this purpose the article first develops estimates of three main drivers of graduation patterns, namely institutional arrangements of TE supply, availability of funding for TE students and private returns to tertiary studies. Second, the article empirically assesses how these three factors affect graduation ratios. Based on this analysis, the article then discusses policy-levers of TE investment and explores possible routes of reform for TE systems in OECD countries. The main findings are as follows: graduation ratios increase with private returns to TE as well with the autonomy and accountability of the supply of education. Lack or insufficient financial help to tertiary students negatively affects graduation ratios. There is a number of policy-levers to stimulate investment in TE. They include policies affecting labour market premia, the degree of flexibility of TE provision and the availability of funding for students. (JEL codes: I21, I22, I28, J24)

Keywords: Investment in tertiary education, returns to education, supply of tertiary education

Suggested Citation

Boarini, Romina and Oliveira Martins, Joaquim and Strauss, Hubert and de la Maisonneuve, Christine and Nicoletti, Giuseppe, Investment in Tertiary Education: Main Determinants and Implications for Policy (June 2008). CESifo Economic Studies, Vol. 54, Issue 2, pp. 277-312, 2008. Available at SSRN: https://ssrn.com/abstract=1154888 or http://dx.doi.org/ifn017

Romina Boarini (Contact Author)

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

2 rue Andre Pascal
Paris Cedex 16, 75775
France

Joaquim Oliveira Martins

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

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

Giuseppe Nicoletti

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

2 rue Andre Pascal
Paris Cedex 16, MO 63108
France
+33 1 4524 8730 (Phone)
+33 1 4524 1347 (Fax)

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