nep-edu New Economics Papers
on Education
Issue of 2011‒08‒22
eighteen papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Exam High Schools and Academic Achievement: Evidence from New York City By Will Dobbie; Roland G. Fryer, Jr.
  2. On Educational Performance Measures By Muriel, Alastair; Smith, Jeffrey A.
  3. EXCELLENCE AND DIVERSITY: The Emergence of Selective Admission Policies in Dutch Higher Education - A Case Study on Amsterdam University College By Christoffel Reumer and Marijk van der Wende
  4. When more schooling is not worth the effort: another look at the dropout decisions of disadvantaged students in Uruguay. By Rossana Patrón
  5. RE-IMAGINING CALIFORNIA HIGHER EDUCATION By John Aubrey Douglass
  6. THE MULTIDISCIPLIPLINARY IMPERATIVE IN HIGHER EDUCATION By C. Judson King
  7. Comparative Essay on Returns to Education in Palestine and Turkey By Aysit Tansel; Yousef Daoud
  8. AFTER BROWNE: The New Competitive Regime for English Higher Education By Roger Brown
  9. ACADEMIC DISCIPLINES AND THE UNDERGRADUATE EXPERIENCE: Rethinking Bok’s “Underachieving Colleges†Thesis By Steven Brint and Allison M. Cantwell
  10. GLOBALIZATION AND DUAL MODES OF HIGHER EDUCATION POLICYMAKING IN FRANCE: Je t’aime moi non plus By Cécile Hoareau
  11. DO I BELONG HERE? Exploring Immigrant College Student Responses on the SERU Survey Sense of Belonging/Satisfaction Factor By Michael J. Stebleton, Ronald L. Huesman, Jr., Aliya Kuzhabekova
  12. A GLOBAL TALENT MAGNET: How a San Francisco/Bay Area Higher Education Hub Could Advance California’s Comparative Advantage In Attracting International Talent and Further Build US Economic Competitiveness By John Aubrey Douglass, Richard Edelstein and Cecile Hoareau
  13. Does School Education Reduce the Likelihood of Societal Conflict in Africa? By Johannes Fedderke; Robert Klitgaard; Kamil Akramov
  14. Public Expenditure on Education and Skill Formation: Is There a Simple Rule to Maximize Skills? By Rossana Patrón; Marcel Vaillant
  15. Inequality of Opportunity in Educational Achievement in Latin America: Evidence from PISA 2006-2009 By Luis Fernando Gamboa; Fábio D. Waltenberg
  16. SEEKING SUSTAINABLE PUBLIC UNIVERSITIES: The Legacy of the Great Recession By Katharine Lyall
  17. POLICY OPTIONS FOR UNIVERSITY OF CALIFORNIA BUDGETING By Charles E. Young
  18. FINANCING EU STUDENT MOBILITY: A Proposed Credit Union Scheme for Europe By Cécile Hoareau

  1. By: Will Dobbie; Roland G. Fryer, Jr.
    Abstract: Publicly funded exam schools educate many of the world's most talented students. These schools typically contain higher achieving peers, more rigorous instruction, and additional resources compared to regular public schools. This paper uses a sharp discontinuity in the admissions process at three prominent exam schools in New York City to provide the first causal estimate of the impact of attending an exam school in the United States on longer term academic outcomes. Attending an exam school increases the rigor of high school courses taken and the probability that a student graduates with an advanced high school degree. Surprisingly, however, attending an exam school has little impact on Scholastic Aptitude Test scores, college enrollment, or college graduation -- casting doubt on their ultimate long term impact.
    JEL: I20 J00
    Date: 2011–08
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:17286&r=edu
  2. By: Muriel, Alastair (Institute for Fiscal Studies, London); Smith, Jeffrey A. (University of Michigan)
    Abstract: Quantitative school performance measures (QPMs) are playing an ever larger role in education systems on both sides of the Atlantic. In this paper we outline the rationale for the use of such measures in education, review the literature relating to several important problems associated with their use, and argue that they nonetheless have a positive role to play in improving the educational quality. We delineate several institutional reforms which would help schools to respond "positively" to QPMs, emphasizing the importance of agents' flexibility to change the way they work, and the importance of a sound knowledge base regarding "what works" in raising attainment. We suggest that the present institutional setups in both England and the US too often hold schools accountable for outcomes over which they have little control – but that such problems are far from insurmountable.
    Keywords: performance measures, education incentives, school quality
    JEL: H52 I2 I28
    Date: 2011–08
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp5897&r=edu
  3. By: Christoffel Reumer and Marijk van der Wende
    Abstract: This paper explores the emergence of selective admission policies in Dutch university education. Such policies are being developed to promote excellence in a higher education system that is generally known to be “egalitarian†and increasingly criticized for a lack of differentiation. The changing policy context of admission in Dutch university education and its driving forces and rationales are discussed in the context of European-wide developments such as the Bologna Process. Especially the emergence of selective liberal arts colleges will be presented as a recent excellence initiative. A review of international trends, methods and criteria in selective admission (notably from systems with extensive experience in this field such as the USA), including historical pitfalls, provides an analytical framework for the discussion of the fostering of excellence in combination with the aim for diversity in the student population. The predictive value of selection methods and criteria used at Amsterdam University College (AUC) are evaluated against the study progress and performance of AUC students. This includes academic criteria such as GPA in secondary school, and AUC’s use of interviews. Examining data from AUC’s first entering class in 2009, the college has achieved enrolling students from different national and socioeconomic backgrounds. It is also achieving excellence in terms of study progress and academic performance, including an attrition rate of only 13 percent. The question is whether interviews generate sufficient added value, in particular with regard to the time and costs of this model and with a view to the risk of subjective interpretations of “soft variables†such as student motivation. The answer seems to be that interviews provide extra guidance to both the student and the institution as to whether the student is choosing the right study programme (and not so much as whether he or she is able to complete it successfully). Consequently, the combined model of selection on the basis of prior academic achievement at secondary school (GPA) and personal interviews will be continued. However, specific attention needs to be paid to the fact that the interviewer’s estimate of academic performance seems to be less accurate to predict study success than the actual secondary school GPA (i.e. based on the former more students could have been wrongly rejected than on the basis of the latter).
    Keywords: Education
    Date: 2010–10–01
    URL: http://d.repec.org/n?u=RePEc:cdl:cshedu:2127932&r=edu
  4. By: Rossana Patrón (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)
    Abstract: In Uruguay, similar to many developing countries, the economic return to lower secondary studies is low. When heterogeneity is introduced in the analysis, it can be shown that differences in the quality of education and in the probability of repetition mark the contrast between an attractive and an inconvenient investment in secondary education between advantaged and disadvantaged students. The values of internal rate of return computed for the Uruguayan case allow concluding that, paradoxically, lower secondary education is an inconvenient investment for disadvantaged students, even disregarding the possibility of them not being able to afford the opportunity costs, explaining the heavy dropout rates of this student type. These results cast some serious doubts on the fairness of compulsory schooling laws that are not accompanied by complementary policies to ensure equal learning outcomes across socioeconomic groups.
    Keywords: education returns, school quality, repetition rates
    JEL: I21 J24
    Date: 2011–02
    URL: http://d.repec.org/n?u=RePEc:ude:wpaper:0511&r=edu
  5. By: John Aubrey Douglass
    Abstract: 2010 marks the 50th anniversary of California’s famed Master Plan for Higher Education, arguably the single most influential effort to plan the future of a system of higher education in the annals of American higher education. This essay builds on the analysis offered in a previous CSHE research paper (“From Chaos to Order and Backâ€) by discussing the major challenges facing California’s higher education system, and offering a possibly pathway to reforms and institution-building essential for bolstering socioeconomic mobility and greater economic competitiveness. Most critics and observers of California’s system remain focused on incremental and largely marginal improvements, transfixed by the state’s persistent financial problems and inability to engage in long-range planning for a population that is projected to grow from approximately 37 million to some 60 million by 2050. President Obama has set a national goal for the US to once again have among the highest educational attainment rates in the world. This would require the nation to produce over 8 million additional degrees; California’s “fair share†would be approximately 1 million additional degrees. A number of studies indicate that California’s higher education system will not keep pace with labor needs in the state, let alone affording opportunities for socioeconomic mobility that once characterized California. California needs to re-imagine its once vibrant higher education system. The objective is to offer a vision of a more mature system of higher education that could emerge over the next twenty years; in essence, a logical next stage in a system that has hardly changed in the last five decades. Informed by the history of the tripartite system, its strengths and weaknesses over time, and the reform efforts of economic competitors throughout the world who are making significant investments in their own tertiary institutions, I offer a “re-imagined†network of colleges and universities and a plan for “Smart Growth.†I paint a picture that builds on California’s existing institutions, predicated on a more diverse array of institutional types, and rooted in the historical idea of mission differentiation. This includes setting educational attainment goals for the state; shifting more students to 4-year institutions including UC and CSU; reorganizing the California Community Colleges to include a set of 4-year institutions, another set of “Transfer Focused†campuses, and having these colleges develop a “gap†year program for students out of high school to better prepare for higher education. It also encompasses creating a new Polytechnic University sector, a new California Open University that is primarily focused on adult learners; and developing a new funding model that recognizes the critical role of tuition, and the market for international students that can generate income for higher education and attract top talent to California. There is also a need to recognize that for the US to increase degree attainment rates, the federal government will need to become a more engaged partner with the states. For the near and possibly long-term, most state governments are in a fiscally weakened position that makes any large-scale investment in expanding access improbable. Because of the size of its population alone, California is the canary in the coal mine. If the US is to make major strides toward President Obama’s goal, it cannot do it without California.
    Keywords: Education
    Date: 2010–10–01
    URL: http://d.repec.org/n?u=RePEc:cdl:cshedu:2127930&r=edu
  6. By: C. Judson King
    Abstract: Disciplines codify related knowledge and have developed powerful approaches that enable both solutions to a wide variety of problems and efficient further extension of knowledge. Individual disciplines have translated into individual departments within universities. Academic departments tend to turn inward, deepening the knowledge within the discipline. Because of this inwardness, the differing methodological approaches among disciplines, and the reward systems within disciplines and universities, it is difficult for faculty to reach outside their disciplines and departments, so as to share knowledge and/or mine knowledge at the intersections of disciplines. However, world needs and opportunities are increasingly complex and require integrated, in-depth contributions from multiple disciplines for progress. Means for universities to encourage and facilitate multidisciplinary activities include organizational structure, incentive budgeting, and leadership and resources that enable directors of multidisciplinary units to negotiate effectively with academic department chairs. Major competitive initiatives involving large resources have proven particularly effective. New universities have opportunities for multidisciplinary research and teaching that would be much more difficult within existing universities. Today’s university graduates must be able to work effectively with persons from other disciplines and understand enough of the basic vocabulary and methodologies of other disciplines to enable that collaboration. A liberal undergraduate education addresses those needs, where the definition of “liberal†encompasses courses reflecting many different disciplines, including the natural sciences and even some engineering. Professions are properly placed at the graduate level, built upon a foundational liberal education. Engineering should join the other professions by changing to that structure.
    Keywords: Education
    Date: 2010–09–01
    URL: http://d.repec.org/n?u=RePEc:cdl:cshedu:2127923&r=edu
  7. By: Aysit Tansel (Middle East Technical University and Economic Research Forum (ERF) Cairo, Egypt); Yousef Daoud (Birzeit University Palestine and Economic Research Forum (ERF) Cairo, Egypt)
    Abstract: This study exposes a comparative treatment of the private returns to education in Palestine and Turkey over the period 2004-2008. Comparable data, similar definitions and same methodology are used in the estimations. The estimates are provided first for average returns to education second for returns at different levels of schooling and finally for returns by different sectors of employment. The results suggest that returns to schooling are higher for Turkey at the various levels of education for females and males and for both years 2004 and 2008. It is believed that the relative size of the Palestinian economy and the uniqueness of subjugation to military occupation contribute greatly to this result. In 2008, returns are lower than 2004 levels for all levels of education; the pattern is less obvious for Turkey across the various levels. However, the 2008 crisis seems to have influenced the more educated more severely (MA and above) in both countries. Female returns to education are higher for women than men in both countries; the gender gap has worsened in 2008, but more so for Palestine. The median ratio of male to female return is 0.55 (university) in 2004 and decreased to 0.17 (high school) in 2008 in Palestine. The corresponding figures for Turkey are 0.79 and .082 (both for high school). Finally, it was found that the selectivity corrected return estimates are lower than the OLS estimates in Palestine while they are higher than the OLS estimates in Turkey.
    Keywords: Returns to Education, Mincer Equation, Gender, Palestine, Turkey
    JEL: J16 J24 J31 J45 O31
    Date: 2011–08
    URL: http://d.repec.org/n?u=RePEc:koc:wpaper:1118&r=edu
  8. By: Roger Brown
    Abstract: From 2012 English universities and colleges will be operating in a more demanding market environment. There will be competition on tuition fees for undergraduate (Baccalaureate) programs for the first time. New private, including “for profitâ€, providers will be entering the market. There will be much more information about what institutions will be offering to existing and potential students. The Government believes that this will raise quality as well as providing a sustainable basis for the future. However there is little evidence to support these beliefs and considerable grounds for supposing that these policies will create a more stratified, and potentially more wasteful, system.
    Keywords: Education
    Date: 2011–05–01
    URL: http://d.repec.org/n?u=RePEc:cdl:cshedu:2127962&r=edu
  9. By: Steven Brint and Allison M. Cantwell
    Abstract: Using data from the 2008 University of California Undergraduate Experience Survey, we show that study time and academic conscientiousness were lower among students in humanities and social science majors than among students in science and engineering majors. Analytical and critical thinking experiences were no more evident among humanities and social sciences majors than among science and engineering majors. All three academically beneficial experiences were, however, strongly related to participation in class and interaction with instructors, and participation was more common among humanities and social sciences students than among science and engineering students. Bok’s (2006) influential discussion of “underachievement’ in undergraduate education focused on institutional performance. Our findings indicate that future discussions should take into account differences among disciplinary categories and majors as well.
    Keywords: Education
    Date: 2011–03–01
    URL: http://d.repec.org/n?u=RePEc:cdl:cshedu:2127961&r=edu
  10. By: Cécile Hoareau
    Abstract: The French Government has had a paradoxical relationship with globalization. Globalization is perceived as both a threat to react against and a cradle for new policy ideas. French policymakers have a love-hate relationship with the European higher education reforms that started in the 1990s, a mixed sentiment that French singer Serge Gainsbourg spoke of in his popular song, ‘Je t’aime moi non plus’. At the outset, most of higher education reforms, such as the Bologna declaration, were framed as a way to build Europe and fight against international competition. Yet, the mode of governance of these reforms mirrored the one recommended by international organizations and led to the precise outcome criticized in globalization, i.e. greater competition. This paper explores the relationship between international, European and domestic discourses and modes of governance. It uses insights from the literature on policy transfer to investigate such relationship and questions the sustainability of such ambivalent discourse. The French government should concentrate on the policy it started developing from 2007 consisting in opening French higher education to globalization. Such global openness requires a change in the academic culture that could be triggered by a reform of academic training.
    Keywords: Education
    Date: 2011–01–01
    URL: http://d.repec.org/n?u=RePEc:cdl:cshedu:2127951&r=edu
  11. By: Michael J. Stebleton, Ronald L. Huesman, Jr., Aliya Kuzhabekova
    Abstract: The immigrant college student population will likely continue to increase. This exploratory study addresses the questions: To what extent does sense of belonging/satisfaction of recent immigrant college students differ from non-immigrant college students? Do perceived self-ratings of belonging vary by immigrant generations? This research draws on a new extensive data source, the Student Experience in the Research University (SERU) survey. Survey data from the 2009 SERU is based on the responses from 55,433 undergraduate students from six-large research institutions from across the United States. Findings suggest that immigrant students’ perception of their sense of belonging and satisfaction is significantly lower than their non-immigrant peers’ perceptions. Immigrant college students -- whether they were a recent immigrant that arrived in the country as a child, or arrived later as a teenager or young adult, or are the children of parents born outside the U.S. ( 2nd generation) -- consistently reported lower levels of belonging/satisfaction as compared to their 3rd or 4th generation (i.e., nonimmigrant) peers. Responses within the immigrant generation groups were similar. The following implications were highlighted: effective practice and application strategies for student affairs practitioners and faculty members who work directly with immigrant college students; policy development suggestions for both academic and student affairs administrators; future research inquiries for scholars who are interested in this fast growing population of college students.
    Keywords: Education
    Date: 2010–09–01
    URL: http://d.repec.org/n?u=RePEc:cdl:cshedu:2127926&r=edu
  12. By: John Aubrey Douglass, Richard Edelstein and Cecile Hoareau
    Abstract: During the 2009-10 academic year international students generated more than $18.8 billion in net income into the US economy. California alone had nearly 100,000 international students with an economic impact of nearly $3.0 billion. In this paper, we outline a strategy for the San Francisco/Bay Area to double the number of international students enrolled in local colleges and universities in ten years or less, generating a total direct economic impact of an additional $1 billion a year into the regional economy. The US retains a huge market advantage for attracting foreign students. Within the US, the San Francisco/Bay Area is particularly attractive and could prevail as an extraordinary global talent magnet, if only policymakers and higher education leaders better understood this and formulated strategies to tap the global demand for higher education. Ultimately, all globalism is local. We propose that the San Francisco/Bay Area, a region with a group of stellar universities and colleges, should re-imagine itself as a Global Higher Education Hub to meet national and regional economic needs, as well as the thirst of a growing world population for high-quality tertiary education. Other parts of the world have already developed their version of the higher education hub idea. The major difference in our proposed Californian version is that foreign competitors seek to attract foreign universities to help build enrollment and program capacity at home, and are funded almost solely by significant government subsidies. Our model builds capacity, but is focused on attracting the world’s talent and generating additional income to existing public and private colleges and universities. Doubling international enrollment from 30,000 to 60,000 students in ten years or less will require expanding regional enrollment capacity as part of a strategy to ensure access to native students, and as part of a scheme to attract a new generation of faculty and researchers to the Bay Area and California. International students would need to pay higher then the full cost of their education, helping to subsidize domestic students and college and university programs. The result would be a San Francisco/Bay Area Global Higher Education Hub – a self-reinforcing knowledge ecosystem that is internationally attractive, socially beneficial, and economically viable. We offer a path for analyzing the feasibility of this Global Higher Education Hub, including the steps necessary to engage the private sector and local government to help create enrollment capacity and academic programs, a discussion of a financial model, possible marketing strategies, and for developing shared facilities and services. This initiative will require most Bay Area colleges and universities, including UC Berkeley and Stanford University, to collaborate. By providing a leadership role, Berkeley and Stanford would help brand the hub idea internationally, provide leadership in shaping direct and indirect economic returns of the SF/Bay area higher education hub, while also gaining from the increased international attractiveness of the region and the use of shared facilities. It is about the money. But it is also about establishing closer ties with the regional universities and colleges, business interests and local governments, enhancing the quality and reputation of our universities and colleges, building enrollment capacity for native students, integrating international perspectives into the activities and learning of students and faculty, and broadening the opportunity for international collaborations. It is about solidifying the Bay Area as a global talent magnet, one that is even more culturally diverse, even more innovative, and that continues to attract talent from throughout the world. We conclude the paper by suggesting that a regionally based knowledge hub would also be a viable strategy for a select group of other urban areas of the US.
    Keywords: Education
    Date: 2011–05–01
    URL: http://d.repec.org/n?u=RePEc:cdl:cshedu:2127968&r=edu
  13. By: Johannes Fedderke; Robert Klitgaard; Kamil Akramov
    Abstract: Heterogeneity Happens: How Rights Matter in Economic Development
    JEL: O10 D99
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:rza:wpaper:220&r=edu
  14. By: Rossana Patrón (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Marcel Vaillant (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)
    Abstract: The ratio of skill to unskilled labour stocks in the economy is widely acknowledged to have an important role for development. Can education policy affect the evolution of this ratio? This paper shows that it can, and it also shows that the actual effect of education policy depends on the allocation rule of the budget across educational levels. The consideration of a stylized hierarchical education model allows us to develop analytical conditions under which the allocation rule favours the accumulation of skills. The analysis has implication for policy makers in developing countries, where skill formation is much needed, because it shows that observed allocation rules usually violate the maximization condition by the assignment of higher-than-optimal resources to higher education.
    Keywords: education budget, skills accumulation
    JEL: I21 I22 I2
    Date: 2011–02
    URL: http://d.repec.org/n?u=RePEc:ude:wpaper:0611&r=edu
  15. By: Luis Fernando Gamboa; Fábio D. Waltenberg
    Abstract: We assess inequality of opportunity in educational achievement in six Latin American countries, employing two waves of PISA data (2006 and 2009). By means of a non-parametric approach using a decomposable inequality index, GE(0), we rank countries according to their degree of inequality of opportunity. We work with alternative characterizations of types: school type (public or private), gender, parental education, and combinations of those variables. We calculate "incremental contributions" of each set of circumstances to inequality. We provide rankings of countries based on unconditional inequalities (using conventional indices) and on conditional inequalities (EOp indices), and the two sets of rankings do not always coincide. Inequality of opportunities range from less than 1% to up to 27%, with substantial heterogeneity according to the year, the country, the subject and the specificication of circumstances. Robustness checks based on bootstrap and the use of an alternative index confirm most of the initial results.
    Date: 2011–08–15
    URL: http://d.repec.org/n?u=RePEc:col:000092:008895&r=edu
  16. By: Katharine Lyall
    Abstract: The business models under which most public universities in the U.S. operate have become unsustainable. They were put in place when state economies were stronger and there were fewer programs making competing claims on state funds. The current Great Recession has made things worse, but the unsustainability of current business models derives from longer-term trends that will prevent state investment in higher education from rebounding to prior levels. States and universities are making both incremental and structural changes in response. Incremental changes work within existing financial and governance parameters to effect cost savings and/or to extend services; they stretch the use of existing or shrinking resources. Structural reforms change financial and/or governance parameters to create different incentives, which focus on performance, outcomes, and stabilizing capacity. A number of these new models are summarized including: “charter†and “public authority†models, the Virginia tiered system model, the Oregon public endowment model, and the UK income-contingent model. Current conditions create both a challenge and an opportunity for statewide higher education systems to re-define their missions and priorities to sustain their public universities for the future. Whether changes are made by drift or by design will determine how well public universities can contribute to the growth of the country in future decades.
    Keywords: Education
    Date: 2011–06–01
    URL: http://d.repec.org/n?u=RePEc:cdl:cshedu:2127970&r=edu
  17. By: Charles E. Young
    Abstract: Within a quarter century after the end of World War II (1945-1970), largely because of the support and investment it received from the State, the University of California had changed from two modest-size general campuses (Berkeley and Los Angeles) and the medical campus in San Francisco (UCSF), to a system of eight general campuses. California was at the pinnacle of its success-its economy strong and growing. Since then, however, the fiscal and political problems facing California have led to a steady erosion in funding support for the University of California, and now are leading to a debate regarding its future. If UC has in the past been an engine propelling the growth of California's economy, it would appear to be wise policy to place a high priority on repairing the damage which has been done to it, and will weaken its ability to serve students and the people of the State and nation. While most observers acknowledge that this is a desired goal, there is little agreement on how best to achieve it. Setting aside the limited numbers who would opt for the status quo, this paper discusses three scenarios for UC. The first is a return to the status quo ante; the second is a full move toward privatization; and the third is a hybrid approach. This last option would mean retaining some of the elements of the past partnership between the state and the university, and could be implemented without unrealistic costs to the State or UC, and allow for the continuing academic health of the university. This last option could be exercised by UC as a whole, by several of the campuses operating through UC, or by several campuses (presumably the same ones as discussed under the "privatization" option) becoming quasi-independent of the current system. It could even be exercised, with the approval of campus and UC officials, by schools, colleges or other intra-campus organizations.
    Keywords: Education
    Date: 2011–03–01
    URL: http://d.repec.org/n?u=RePEc:cdl:cshedu:2127959&r=edu
  18. By: Cécile Hoareau
    Abstract: Governments worldwide face the challenge of financing a growing student population with limited resources, especially in the current context of difficult economic recovery. Student loan schemes, because they appear as cost-efficient and are defendable on the lines of social equity (students invest in their future), are increasingly politically attractive. It was therefore only a matter of time before the European Union considered the feasibility of implementing a similar scheme. Such a lending scheme faces EU-specific limitations. The Union has more limited resources than a fully-grown government. It is also bound by Treaty rules to complementary competencies and has to accommodate various levels of member states’ willingness to integrate further. This paper offers a general discussion on the design of an EU-wide lending scheme for students. It argues in favour of a European Credit Union for Students, an EU-wide agency liaising with the European Investment Bank to raise the necessary funds and subcontracting other institutions for the administration of the loans. This agency would start by financing loans for the relatively narrow pool of mobile students under the Erasmus scheme. Doing so, it would lay down the foundation for a further integration of financing capacities as/if the Union becomes ever closer.
    Keywords: Education
    Date: 2010–11–01
    URL: http://d.repec.org/n?u=RePEc:cdl:cshedu:2127942&r=edu

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