Efficiency and equity in public higher education in Brazil

Detalhes bibliográficos
Autor(a) principal: Nothen Ruhe, Ana Paula
Data de Publicação: 2023
Outros Autores: de Carvalho Griebeler, Marcelo
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Revista Brasileira de Economia (Online)
Texto Completo: https://periodicos.fgv.br/rbe/article/view/85621
Resumo: We build a model that captures the main elements of the higher education market in order to evaluate the performance of different financing mechanisms in terms of efficiency and equity. Our main finding is that the provision of direct places in public colleges and universities raises a trade-off between efficiency and equity whenever part of the education cost is financed through taxes. Moreover, such a policy benefits primarily the richest individuals in society, such that it may enlarge the prior inequality inherited from the individuals’ familial background. Alternative mechanisms, namely public provision with tuition fees covering totally or partially the educational cost, and the government working as an intermediary between students and the capital market, are also analyzed. We show that, compared to these alternatives, the policy of ``free" higher education performs worse in terms of the trade-off between efficiency and equity. In fact, while it is impossible to achieve efficiency, ex-post and ex-ante equality simultaneously in almost all mechanisms analyzed, the less the taxpayer subsidizes students the lower the trade-off.
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spelling Efficiency and equity in public higher education in BrazilA note on the trade-off between efficiency and equity in public financing of higher educationHigher educationFree higher educationPublic policyHigher educationPublic policy financingWe build a model that captures the main elements of the higher education market in order to evaluate the performance of different financing mechanisms in terms of efficiency and equity. Our main finding is that the provision of direct places in public colleges and universities raises a trade-off between efficiency and equity whenever part of the education cost is financed through taxes. Moreover, such a policy benefits primarily the richest individuals in society, such that it may enlarge the prior inequality inherited from the individuals’ familial background. Alternative mechanisms, namely public provision with tuition fees covering totally or partially the educational cost, and the government working as an intermediary between students and the capital market, are also analyzed. We show that, compared to these alternatives, the policy of ``free" higher education performs worse in terms of the trade-off between efficiency and equity. In fact, while it is impossible to achieve efficiency, ex-post and ex-ante equality simultaneously in almost all mechanisms analyzed, the less the taxpayer subsidizes students the lower the trade-off.Nós construímos um modelo que captura os principais componentes do mercado de educação superior com o objetivo de avaliar a performance de diferentes mecanismos de financiamento em termos de eficiência e equidade. O principal resultado do modelo mostra que a provisão direta de vagas em universidades públicas cria um trade-off entre eficiência e equidade sempre que parte do custo dessas instituições for financiada a partir de impostos. Ainda, esse modelo de financiamento beneficia sobretudo os indivíduos mais ricos da sociedade, de modo a intensificar a desigualdade prévia herdada da condição familiar dos estudantes. Mecanismos alternativos de financiamento também são analisados, como a cobrança de taxas sobre os estudantes cobrindo parte ou a totalidade do custo do ensino que recebem, e a atuação do governo como um intermediário entre os estudantes de instituições privadas e o mercado de capitais. Nós mostramos que, comparada a essas alternativas, a política de educação superior “gratuita” resulta em um trade-off mais intenso entre eficiência e equidade. De fato, embora seja impossível atingir simultaneamente os critérios de eficiência, equidade ex-post e equidade de oportunidades ex-ante em quase todos os modelos de financiamento analisados, quanto menor for o subsídio fornecido pelo pagador de impostos ao estudante, menor é o trade-off resultante.EGV EPGE2023-08-11info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionArticlesArtigosTextoinfo:eu-repo/semantics/otherapplication/pdfhttps://periodicos.fgv.br/rbe/article/view/85621Revista Brasileira de Economia; Vol. 77 No. 3 (2023): JUL -SETRevista Brasileira de Economia; v. 77 n. 3 (2023): JUL -SET1806-91340034-7140reponame:Revista Brasileira de Economia (Online)instname:Fundação Getulio Vargas (FGV)instacron:FGVenghttps://periodicos.fgv.br/rbe/article/view/85621/84351BrazilBrasilCopyright (c) 2023 Revista Brasileira de Economiainfo:eu-repo/semantics/openAccessNothen Ruhe, Ana Paulade Carvalho Griebeler, Marcelo2023-08-30T22:48:58Zoai:ojs.periodicos.fgv.br:article/85621Revistahttps://periodicos.fgv.br/rbe/https://periodicos.fgv.br/rbe/oai||rbe@fgv.br1806-91340034-7140opendoar:2024-03-06T13:03:54.324338Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)true
dc.title.none.fl_str_mv Efficiency and equity in public higher education in Brazil
A note on the trade-off between efficiency and equity in public financing of higher education
title Efficiency and equity in public higher education in Brazil
spellingShingle Efficiency and equity in public higher education in Brazil
Nothen Ruhe, Ana Paula
Higher education
Free higher education
Public policy
Higher education
Public policy financing
title_short Efficiency and equity in public higher education in Brazil
title_full Efficiency and equity in public higher education in Brazil
title_fullStr Efficiency and equity in public higher education in Brazil
title_full_unstemmed Efficiency and equity in public higher education in Brazil
title_sort Efficiency and equity in public higher education in Brazil
author Nothen Ruhe, Ana Paula
author_facet Nothen Ruhe, Ana Paula
de Carvalho Griebeler, Marcelo
author_role author
author2 de Carvalho Griebeler, Marcelo
author2_role author
dc.contributor.author.fl_str_mv Nothen Ruhe, Ana Paula
de Carvalho Griebeler, Marcelo
dc.subject.por.fl_str_mv Higher education
Free higher education
Public policy
Higher education
Public policy financing
topic Higher education
Free higher education
Public policy
Higher education
Public policy financing
description We build a model that captures the main elements of the higher education market in order to evaluate the performance of different financing mechanisms in terms of efficiency and equity. Our main finding is that the provision of direct places in public colleges and universities raises a trade-off between efficiency and equity whenever part of the education cost is financed through taxes. Moreover, such a policy benefits primarily the richest individuals in society, such that it may enlarge the prior inequality inherited from the individuals’ familial background. Alternative mechanisms, namely public provision with tuition fees covering totally or partially the educational cost, and the government working as an intermediary between students and the capital market, are also analyzed. We show that, compared to these alternatives, the policy of ``free" higher education performs worse in terms of the trade-off between efficiency and equity. In fact, while it is impossible to achieve efficiency, ex-post and ex-ante equality simultaneously in almost all mechanisms analyzed, the less the taxpayer subsidizes students the lower the trade-off.
publishDate 2023
dc.date.none.fl_str_mv 2023-08-11
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Articles
Artigos
Texto
info:eu-repo/semantics/other
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://periodicos.fgv.br/rbe/article/view/85621
url https://periodicos.fgv.br/rbe/article/view/85621
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv https://periodicos.fgv.br/rbe/article/view/85621/84351
dc.rights.driver.fl_str_mv Copyright (c) 2023 Revista Brasileira de Economia
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Copyright (c) 2023 Revista Brasileira de Economia
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.coverage.none.fl_str_mv Brazil
Brasil
dc.publisher.none.fl_str_mv EGV EPGE
publisher.none.fl_str_mv EGV EPGE
dc.source.none.fl_str_mv Revista Brasileira de Economia; Vol. 77 No. 3 (2023): JUL -SET
Revista Brasileira de Economia; v. 77 n. 3 (2023): JUL -SET
1806-9134
0034-7140
reponame:Revista Brasileira de Economia (Online)
instname:Fundação Getulio Vargas (FGV)
instacron:FGV
instname_str Fundação Getulio Vargas (FGV)
instacron_str FGV
institution FGV
reponame_str Revista Brasileira de Economia (Online)
collection Revista Brasileira de Economia (Online)
repository.name.fl_str_mv Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)
repository.mail.fl_str_mv ||rbe@fgv.br
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