In recent decades Economics of Education as a separate
subdiscipline of economics has experienced its revival. Steaming out from
human capital hypothesis (although challenged by the screening hypothesis),
it concerns main problems of provision of educational services and looks
for answers relating to issues of equity and efficiency in this provision.
Many issues treated by the discipline can be equally well
applied to all levels of education. However, it is agreed that in other
aspects lower and higher education should be treated separately and optimal
set of solutions can differ between both types of education. Rationale
behind it is following:
-it is agreed that lower levels of education bring about to the society
higher external benefits than higher education;
- the rate of return on different levels of education varies;
-the role of parents is negatively correlated to the level of education
(i.e. at higher level of students, who are to benefit and to bear
substantial part of costs of their education gain higher decision making
power).
One of the key issues in Economics of Education is the
question of optimal provision and financing of educational services. There
has been a long discussion on it. Because of external effects of education
and failure of private capital markets to provide sufficient resources
to cover its costs by students and their families there is a clear
concent about the necessity of state intervention into the provision of
educational services. Debates have concerned the extent to which education
should be financed from taxation and to which private resources should
be used. Answers vary depending on the level of education concerned. Even
if from theoretical point of view they are quite strightforward, discussions
continue about the feasability and ways to implement optimal solutions
into reality.
The main goal of the project is to relate this discussion
to processes, which are going on in transitional economies. To provide
empirical and theoretical basis for optimal transition of their educational
systems. The study will concentrate on the system of higher education in
Slovakia. However, where possible, conclusions will be generalised for
Central European Region.
Methodologically the research will be based on Becker’s
theory of human capital and rest on the Coasian tradition utilisied by
approach of new institutional economics. Although the concept of human
capital has entered economics several decades ago, in transitional economies
the scope for its utilisation opened up only in recent years when labour
markets began to develop. Current system rests on the heritage of communism,
in which accumulated human capital has enhanced productive capacities of
economic agents in a very limited scope, since on one hand education was
provided by the state and financed from tax revenues, on the other hand
policy of equal earnings existed. Unability to grasp gains on ones own
human capital in an official sector supressed private initiative and inovation
of qualified labour. Other specifics of a communist system was the selective
admission process to institutions of secondary and higher education. Although
theoretically even access to education was provided, in reality specific
discrimination criteria (party membership, professional background of an
applicant or his parents, regional considerations) were applied. Transitional
countries have to face this heritage when transforming their educational
systems.
Project will develop in several stages:
At the first stage existing literature will be reviewed
to postulate main hypothesis resting on findings of science. At the same
time preparatory work for comparative studies and empirical research will
be conducted.
At the second stage comparative analysis of selected systems
of higher education and their critical evaluation will be conducted for
selected developed and transitional countries. Real systems will be tested
for their correspondance to conclusions of theory. Publications of international
institutions (e.g. OECD), published country studies as well original research
will be used. Relevant institutions of selected countries will be approached
to obtain more detailed information and to clarify controversial issues.
More attention will be paid to cases of following countries: the Czech
Republic, Hungary, Latvia, Belgium (these countries were selected for geographical,
historical, comparative and professional reasons).
At the third stage empirical analysis of the system of higher
education in Slovakia will be conducted. Its recent changes, current status
quo and policy intentions will be evalued.
In this framework:
-access to education by different income groups;
-access to education by students coming from various professional
backgrounds;
-access to education by students coming from different
regions of Slovakia;
-access to education by different national and ethnical
groups
in the existing system will be evalued taking into account differences
between private and public education.
-to assess selected private returns from further education
using:
wage differencials between workers with secondary
and higher education (for selected specialisations);
unemployment ratios of emploees with different levels
of education;
-to estimate private costs of higher education using the
concept of opportunity costs taking into account:
foregone wages;
costs of books;
travel costs;
costs of living (last two separately for students
residing outside the location of the institution of higher education);
tution (where applicable);
-to asses quality and quantity of educational services
provided using:
number of students
student/teachers ratios
nominal government expenditures on higher education
(according to the existing pattern of their distribution)
real government expenditures on higher education
(according to the existing pattern of their distribution)
staff structure of institutions of higher education (qualification,
age, gender, language knowledge);
and other indicators.
Subject to data availability dynamics of development of
these characteristics will be studied. The research on these issues will
be made using publications of Slovak Statistical Office, Ministry of Education
of Slovakia, accessable archives of Slovak institutions of higher education
and the method of survey. On the basis of research findings redistributional
impact of existing system and further chracteristics will be evalued.
On the fourth stage findings of stages 1-3 will be summarised
and policy relevant conclusions for the reform of Slovak system of higher
education will drawn. Research paper and articles will be prepared.