한국조세재정연구원 - OAK리포지터리

Korea Institute of Public Finance
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Government Support for Tertiary Education: Current Status, Problems and Strategies for Improvement

Keyword
Title
Government Support for Tertiary Education: Current Status, Problems and Strategies for Improvement
Authors
Jongseok An; Byung Mok Jeon; Jin Yeong Kim; Young Lee
Issue Date
2012-12
Publisher
KIPF
Citation
pp. 88
Abstract
In Recent years, government support for tertiary became an important issue in Korea. Most of the government support for education is focused on the primary and the secondary education. The tertiary education got only small portion of government support. Therefore, most of the education costs are covered by tuition. In Korea, The share of tuition in total education costs is 80%, while the shares of government support are 80% in other advanced countries on average. Thus student associations and a group of researchers and politicians argue that the government has to increase its support and thereby reduce tuition by half. At the same time, there is another group of researchers and politicians arguing that cutting marginal cost of tertiary education is not a good policy. Reducing marginal cost of education may increase demand and supporting college graduate through tax may results in regressive redistribution. This report investigates current government support for tertiary education, examines the rationale for government support, estimates the demand function for tertiary education, compares various methods to support tertiary education based on efficiency and equity criteria, and evaluate the volume of current support compared to other countries. Based on these investigations and examinations, we discuss policy directions.
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