This paper analyses the effects of public funding of higher education on individuals’ welfare, taking into account the hierarchical nature of the education system and the fact that parents may complement basic public education with private tutoring. Although public funding financed by a proportional income tax increases access to higher education, some of the agents who gain access lose in welfare terms. Moreover, it is shown that the marginal agent regarding access to higher education would always prefer a pure private funding system in which he would not send his offspring to higher education but would also not pay tuition fees or pay taxes.
Author: Ana Balcão Reis
You can find the research article here.
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Finland, Norway, Sweden, all these countries are seen as the dream country to raise your children, but have you ever heard about Switzerland? I’m not talking about its chocolate, inventors, or its capability to shelter its entire human population in nuclear fallout shelters in the event of nuclear war; in fact, what is more, intriguing it’s their education system and the possibility of it being strongly related to the Swiss economy.
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