Abstract
The patterns of government subsidies to higher education in France, Germany, Netherlands, Sweden, and the United Kingdom (UK) are compared and contrasted. The subsidies are subsequently evaluated in the light of stated policy objectives, with particular attention to the objectives of efficiency and equity. Two extreme models of financing are considered; one in which public subsidy covers 100 per cent of the private costs of higher education, including income forgone by students, the other in which public subsidy to students is kept at a minimum. The study concludes that the ideal package from the standpoint of efficiency and equity is (1) a grants system in the last few years of secondary education; (2) a system of fees equal to about 30–50 per cent of institutional incomes and (3) an income contingent loan scheme (or graduate tax) for both undergraduate and postgraduate students.
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The research for this paper was sponsored by the United States Education Policy Research Center for Higher Education and Society under HEW Contract No. 300-76-0026. The views expressed are not necessarily those of the Center. Our thanks are due to J. Froomkin for valuable comments on an earlier draft.
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Blaug, M., Woodhall, M. Patterns of subsidies to higher education in Europe. High Educ 7, 331–361 (1978). https://doi.org/10.1007/BF00139530
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DOI: https://doi.org/10.1007/BF00139530