IDEAS home Printed from https://ideas.repec.org/a/bla/worlde/v29y2006i8p1057-1075.html
   My bibliography  Save this article

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

Author

Listed:
  • Bruce Chapman
  • David Greenaway

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

  • Bruce Chapman & David Greenaway, 2006. "Learning to Live with Loans? International Policy Transfer and the Funding of Higher Education," The World Economy, Wiley Blackwell, vol. 29(8), pages 1057-1075, August.
    • Handle: RePEc:bla:worlde:v:29:y:2006:i:8:p:1057-1075
    DOI: 10.1111/j.1467-9701.2006.00822.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9701.2006.00822.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9701.2006.00822.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chapman, Bruce & Ryan, Chris, 2005. "The access implications of income-contingent charges for higher education: lessons from Australia," Economics of Education Review, Elsevier, vol. 24(5), pages 491-512, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elena Del Rey & Bertrand Verheyden, 2008. "Loans, Insurance and Failures in the Credit Market for Students," Working Papers 359, Barcelona School of Economics.
    2. Zahid Sobaci, 2009. "Regional Development Agencies in Turkey: Are They Examples of Obligated Policy Transfer?," Public Organization Review, Springer, vol. 9(1), pages 51-65, March.
    3. Gareth Bryant & Ben Spies-Butcher, 2020. "Bringing finance inside the state: How income-contingent loans blur the boundaries between debt and tax," Environment and Planning A, , vol. 52(1), pages 111-129, February.
    4. Jimenez, Emmanuel & Nguyen, Vy & Patrinos, Harry Anthony, 2012. "Stuck in the middle ? human capital development and economic growth in Malaysia and Thailand," Policy Research Working Paper Series 6283, The World Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Buly A Cardak & Chris Ryan, 2007. "Participation in Higher Education: Equity and Access: Are Equity-based Scholarships an Answer?," Working Papers 2007.03, School of Economics, La Trobe University.
    2. Kostas Mavromaras & Seamus Mcguinness & Nigel O'Leary & Peter Sloane & Yi King Fok, 2010. "The Problem Of Overskilling In Australia And Britain," Manchester School, University of Manchester, vol. 78(3), pages 219-241, June.
    3. Chapman, Bruce, 2006. "Income Contingent Loans for Higher Education: International Reforms," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 2, chapter 25, pages 1435-1503, Elsevier.
    4. John Jerrim & Anna Vignoles & Ross Finnie, 2012. "University access for disadvantaged children: A comparison across English speaking countries," DoQSS Working Papers 12-11, Quantitative Social Science - UCL Social Research Institute, University College London.
    5. Wales, Philip, 2013. "Access all areas? The impact of fees and background on student demand for postgraduate higher education in the UK," LSE Research Online Documents on Economics 57846, London School of Economics and Political Science, LSE Library.
    6. Hassani-Nezhad, Lena & Anderberg, Dan & Chevalier, Arnaud & Lührmann, Melanie & Pavan, Ronni, 2021. "Higher education financing and the educational aspirations of teenagers and their parents," Economics of Education Review, Elsevier, vol. 85(C).
    7. Wolfram F. Richter & Berthold U. Wigger, 2012. "Besteuerung des Humanvermögens," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 13(1-2), pages 82-102, February.
    8. Barr, Nicholas, 2009. "Financing higher education: lessons from economic theory and reform in England," LSE Research Online Documents on Economics 30873, London School of Economics and Political Science, LSE Library.
    9. repec:ces:ifodic:v:5:y:2007:i:2:p:14567392 is not listed on IDEAS
    10. Azmat Ghazala & Simion Ştefania, 2021. "Charging for Higher Education: Estimating the Impact on Inequality and Student Outcomes," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(1), pages 175-239, January.
    11. Bruce Chapman, 2008. "The Australian University Student Financing System : The Rationale for, and Experience with, Income Contingent Loans," EABER Working Papers 21944, East Asian Bureau of Economic Research.
    12. Michael Bahrs & Thomas Siedler, 2019. "University Tuition Fees and High School Students’ Educational Intentions," Fiscal Studies, John Wiley & Sons, vol. 40(2), pages 117-147, June.
    13. Nicholas Gruen, 2009. "Beyond Central Planning: Innovation in Government in the 21st Century," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 42(1), pages 96-103, March.
    14. Erfort, Olga & Erfort, Irina & Zbarazskaya, Larisa, 2016. "Financing higher education in Ukraine: The binary model versus the diversification model," International Journal of Educational Development, Elsevier, vol. 49(C), pages 330-335.
    15. Canton, Erik & Blom, Andreas, 2004. "Can student loans improve accessibility to higher education and student performance? An impact study of the case of SOFES, Mexico," Policy Research Working Paper Series 3425, The World Bank.
    16. Jenny Chesters, 2010. "Has the effect of parents’ education on child’s education changed over time?," CEPR Discussion Papers 637, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    17. Azmat, Ghazala & Simion, Stefania, 2017. "Higher Education Funding Reforms: A Comprehensive Analysis of Educational and Labor Market Outcomes in England," CEPR Discussion Papers 12389, C.E.P.R. Discussion Papers.
    18. Winter, Stefan & Pfitztner, Alexander, 2013. "Externalities and subsidization of higher education," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79993, Verein für Socialpolitik / German Economic Association.
    19. Buly A Cardak & Chris Ryan, 2006. "Why are high ability individuals from poor backgrounds under-represented at university?," Working Papers 2006.04, School of Economics, La Trobe University.
    20. Bruce Chapman & Mark Rodrigues & Chris Ryan, 2007. "HECS for TAFE: The case for extending income contingent loans," Treasury Working Papers 2007-02, The Treasury, Australian Government, revised Apr 2007.
    21. Jeff Borland & Michael Coelli, 2016. "Labour Market Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 92(299), pages 517-547, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:worlde:v:29:y:2006:i:8:p:1057-1075. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.