Courtioux, Pierre (2008): How Income Contingent Loans could affect Return to Higher Education: a microsimulation of the French Case.
Download (123kB) | Preview
The paper assesses the implementation of income contingent loan schemes for higher education (ICL) in an institutional context characterized by two main features: (i) a former tuition free system and (ii) a great heterogeneity in tertiary education’s diplomas quality and cost, which impacts the individual career paths. In this particular case, ICL implementation leads to a trade-off between increasing ‘career’ equity in terms of collective public spending versus individual gains and widening low education traps by reducing the economic incentives to pursue a tertiary education curriculum. Based on a dynamic microsimulation model we propose an ex ante evaluation of the enlargement of low education traps induced by the implementation of different ICL designs in France. We conclude that the risk of low education traps’ enlargement remains very small.
|Item Type:||MPRA Paper|
|Original Title:||How Income Contingent Loans could affect Return to Higher Education: a microsimulation of the French Case|
|Keywords:||higher education;income contingent loan; microsimulation;|
|Subjects:||I - Health, Education, and Welfare > I2 - Education and Research Institutions
C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C53 - Forecasting and Prediction Methods ; Simulation Methods
|Depositing User:||Pierre Courtioux|
|Date Deposited:||25. Mar 2009 15:49|
|Last Modified:||12. Feb 2013 02:01|
Albouy V. Wanecq T. (2003), “Les inégalités sociales d’accès aux grandes écoles”, Economie et Statistique, n°361, p.27-47.
Andrews, L. (1999), “The effect of HECS on access”, Research report, Department of Education, Employment, training and Youth Affairs, Camberra.
Aungles, P., Buchanan, I., Karmel, T. MacLahan, M. (2002) “HECS and opportunities in higher education”, Research, Analysis and Evaluation Group, Commonwealth Department of Education, Science and training, Camberra.
Chapman B. (1997), “Conceptual issues and the Australian experience with income contingent charges for higher education”, The Economic Journal, 107:738-751
Chapman B. (2006a), “Income Contingent Loans for Higher Education: International Reforms”, in Hannushek E.A., Welch F. (eds), Handbook of the Economics of Education, Volume 2 , Elsevier, p. 1435-1503.
Chapman B. (2006b), Government Managing Risk. Income contingent loans for social and economic progress, Routledge.
Chapman B., Ryan C. (2002), “Income contingent financing of student higher education charges: Assessing the Australian innovation”, The Welsh Journal of Education, 11 (1), p. 64-81.
Chapman B., Ryan C. (2003) “Higher Education Financing and Student Access: A review of the Literature”, Working paper, Economics Program Research School of Social Sciences, Australian national University, October.
Commission of the European Communities (2005), Progress towards the Lisbon objectives in education and training, 2005 Report, Commission staff working paper, SEC (2005) 419, Brussels.
Harding A. (1993), Lifetime Income Distribution and Redistribution: Applications of a microsimulation Model, Contribution to economic Analysis series, Amsterdam, North-Holland.
Harding A. (1995), “Financing Higher Education: An assessment of Income Contingent Loan options and Repayment Patterns over the Life Cycle”, Education Economics, 3 (2): 173-203.
Heckman J., Lochner L., Todd P. (2006), “Earning Functions, Rates of Return and Treatment Effects: The Mincer equation and beyond”, in Hannushek Eric A., Welch Finis (eds), Handbook of the Economics of Education, Volume 1 , Elsevier, p. 307-458.
Jacobs B. (2002), “An investigation of education finance reform. Graduate taxes and income contingent loans in the Netherlands”, CPB Discusion Paper n°9, Netherlands Bureau for Economic Policy Analysis, July.
LaRocque, N. (2005), “The New Zealand student loan scheme”, A presentation to the KEDU World Bank International Forum Financing Reforms for Tertiary Education in the Knowledge Economy, Seoul, the Republic of Korea, April.
Long, M., Carpenter, P., Hayden, M. (1999), “Participation in education and training: 1980-1994”, Longitudinal Surveys of Australian Youth Research Report N° 13, Australian Council for Educational research, Melbourne.
Maani, S.A., Warner, A. (2000), “The economic implications of tertiary fee rises in relation to student welfare and the policy environment”, report to the University of Auckland Council, Auckland, July.
Marks, G.N., Flemming, N. Long, M., McMillan, J. (2000), “Patterns of participation in year 12 to higher education in Australia: Trends and issues”, Longitudinal Surveys of Australian Youth, research Report, N° 17, ACER, Melbourne.
Mincer J. (1974), Scooling, Experience and Earnings, Columbia University Press, New-York.
Mitton L., Sutherland H. Weeks M. (2000), Microsimulation Modelling for Policy Analysis. Challenges and Innovations, Cambridge University Press.
Robert-Bobée I. (2006), “Projection de population 2005-2050 pour la France métropolitaine”, Working Paper, Insee, Methodes et Résultats, n° F0603.
Vallin J., Meslé F. (2001), Tables de mortalité françaises pour les XIXe et XXè siècles et projections pour le XXèsiècle, INED, Paris, 102p.
Vandenberghe V., Debande O. (2007), “Deferred and Income-contingent Tuition Fees: An Empirical Assessment using Belgian, German and UK Data”, Education Economics, 15 (4), p. 421-440.
Zuber S., (2004), “Evolution de la concentration de la dépense publique d’éducation en France 1900-2000”, Education et formation, n° 70, p. 97-108.