Learning to Live with Loans? International Policy Transfer and the Funding of Higher Education

19 Pages Posted: 14 Jul 2006

See all articles by Bruce Chapman

Bruce Chapman

Australian National University, Research School of Social Sciences (RSSS) - Economics Program; Australian National University (ANU) - Crawford School of Public Policy

David Greenaway

University of Nottingham - School of Economics

Abstract

Over the last decade or so a number of OECD economies have migrated from providing higher education free at the point of consumption to levying user charges. However, rather than charges for tuition being paid up-front, contributions have taken the form of income-contingent loans. Graduates therefore contribute to the costs of their education, after they have graduated and when they are earning. The earliest example of this instrument was in Australia, with the introduction of the Higher Education Contributions Scheme (HECS). This paper argues that following their successful introduction in Australia, income-contingent loans offer a good example of successful international policy transfer, with elements of that scheme being adopted and modified for use in New Zealand, South Africa and the United Kingdom. The paper reviews the conditions for successful policy transfer and discusses the reasons why the arrangements have not proliferated in non-OECD countries.

Suggested Citation

Chapman, Bruce James and Greenaway, David, Learning to Live with Loans? International Policy Transfer and the Funding of Higher Education. World Economy, Vol. 29, No. 8, pp. 1057-1075, August 2006, Available at SSRN: https://ssrn.com/abstract=917229 or http://dx.doi.org/10.1111/j.1467-9701.2006.00822.x

Bruce James Chapman (Contact Author)

Australian National University, Research School of Social Sciences (RSSS) - Economics Program ( email )

HC Coombs Building
Australian National University
Canberra, Australian Capital Territory 0200
Australia

Australian National University (ANU) - Crawford School of Public Policy

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

David Greenaway

University of Nottingham - School of Economics ( email )

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Nottingham, NG7 2RD
United Kingdom
+44 115 951 5469 (Phone)
+44 115 951 4159 (Fax)

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