ERIC Number: ED153370
Record Type: RIE
Publication Date: 1973-Jul
Reference Count: 0
The Financing of Education: An Examination of Basic Issues. Bank Staff Working Paper No. 157.
The costs of education continue to increase, despite education's uncertain effectiveness in curing social and economic ills. A wise cost and resource allocation policy can help control runaway educational spending, but cannot bridge the widening gap between educational costs and funding. State support of education is required on two grounds: economic efficiency and social equity. Though education benefits those who receive it more directly than those who pay taxes for it, the amount of that benefit which returns to the state and to the society must be considered when determining the proportion of educational costs to be borne privately. Although the proportion of these costs borne by the public seems to be growing, equal educational opportunity remains elusive. The impact of the redistribution of wealth through public educational subsidies, including tuition-free elementary and secondary schooling and student aid plans for higher education, awaits fuller analysis. Human capital theory fails to take account of the impact of this redistribution on those not educated. Consideration of the full range of economic issues in educational finance confirms that the most important problem is determining the most beneficial mix of public and private support for each level of education for each population group. (Author/PGD)
Descriptors: Cost Effectiveness, Developing Nations, Educational Economics, Educational Finance, Elementary Secondary Education, Equal Education, Finance Reform, Higher Education, Human Capital, Private Financial Support, Student Financial Aid, Student Loan Programs, Tax Allocation, Tuition, Unit Costs
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: International Bank for Reconstruction and Development, Washington, DC.
Note: Catalog No. 223