Artikli pealkiri: Cost-Sharing and Study Duration in Higher Education: Simulation Results and European Evidence

Autorid: 
Kadri Männasoo - TalTech, Department of Economics and Finance 
 

Lühikokkuvõte:

This study investigates the economic incentives underlying cost-sharing in higher education. A two-period simulation model is developed in which both the government and a representative individual maximize their net present value returns. In the first period, both individuals and the government invest in higher education to accumulate human capital; in the second period, the individual earns income and the government collects taxes. Within this joint framework, the individual chooses the optimal curricular study duration while the government determines its optimal share of higher education funding. Dual gains arise on both sides: private study effort reduces the need for government subsidies and increases future tax revenues while public investment lowers individuals’ out-of-pocket costs and strengthens instructional capacity. By varying the discount rate and expected wage premiums, the Pareto optimal solutions show that higher wage bonuses and lower discount rates encourage individuals to study longer, trading off first period labour income for higher expected future returns. For the government, the gains from higher expected returns to human capital and lower discount rates are twofold: stronger private incentives to accumulate human capital reduce the optimal public share of higher-education funding and increase future tax revenues generated from the skill premium. Empirical evidence from 28 European countries over 2013-2020 supports the model’s implications. Countries’ where students study longer and where enrolment in master’s programmes is higher tend to exhibit a lower public share of higher-education funding, consistent with the mechanism identified in the simulation.

Tallinna Tehnikaülikooli majandusanalüüsi ja rahanduse instituudi avatud teadusseminarid toimuvad tavaliselt kuu teisel ja neljandal kolmapäeval nii kohapealse kui ka veebis osalemisvõimalusega, kui ei ole teatatud teisiti. Ettekanne kestab u 45 minutit, millele järgneb veerand tundi arutelu. Seminar toimub inglise keeles. Ettekande aluseks olev artikkel on üldjuhul kättesaadav seminaril kohapeal. Küsimuste korral võib pöörduda seminaride koordinaatori Karsten Staehri [email protected] poole.