This blog is based on a full-length article published at https://www.brookings.edu/research/lessons-from-the-end-of-free-college-in-england/
Earlier this month, New York became the first US state to offer all but its wealthiest residents free tuition at public four-year institutions in the state. This new ‘Excelsior Scholarship’ doesn’t make college completely free, nor is it without significant restrictions. Still, it demonstrates the growing strength of the free college movement in the United States.
The free college movement in the US is typically associated with liberal and progressive politics, and motivated by concerns about rising inequality and declining investments in public goods like education. Americans are thus sometimes surprised to hear the story of the end of free college in England was built upon very similar motivations.
Until 1998, full-time students in England could attend public universities completely free of charge. Two decades later, most public universities in England now charge £9,250 – equivalent to about $11,380, or 18% more than the average sticker price of a U.S. public four-year institution.
Has this major restructuring of higher education finance over the last twenty years led the English system backwards or forwards in terms of improving quality, quantity, and equity in higher education? We find that at a minimum, ending free college in England has not stood in the way of rising enrollments, and institutional resources per student (one measure of quality) have increased substantially since 1998. Moreover, after many years of widening inequality, socioeconomic gaps in college attainment appear to have stabilized or slightly declined.
By Gill Wyness
With UK tuition fees now among the highest in the world, but benefits from having a degree remaining substantial, choosing the right university has never been more important for young people. The government has tried to make this easier by offering more and more information not just on the university experience but on the quality of the institution and even the potential wage return students could reap.
Despite all these efforts to make the decision about where to apply as informed as possible, one issue remains: students still apply to university based on their predicted rather than actual qualifications. And these predictions are not always accurate.
Using information on university applicants’ actual and predicted grades and their university attended, obtained from the Universities and Colleges Admissions Service (UCAS), I find only 16% of applicants achieved the A-level grades that they were predicted to achieve, based on their best 3 A-levels.
For the most part, when we think about social mobility, our concerns are with those on the lower rungs of society’s ladder; people “for whom life is a struggle and who work all hours to keep their heads above water” as Prime Minster Theresa May put it in her most recent speech on the matter. One of the issues often considered is how likely are those from disadvantaged backgrounds to enter into higher education. This is often viewed as the direct route to the top jobs in the UK where a degree is almost always a pre-requisite now. The hope is that, if society is meritocratic, rewarding those for effort and achievement rather than family background, if we get more disadvantaged kids into higher education then this will equalise their chances of reaching the top jobs. Unfortunately, in the UK, this does not seem to be the case. Recent research by ourselves, and colleagues from Cambridge, Bath and Warwick university has revealed that higher education is not the leveller we might hope it to be, and that socio-economic differences persist throughout higher education and into the graduate labour market, even comparing those with similar educational attainment.
By Anna Valero and John Van Reenen, Centre for Economic Performance
In 1900, only one in a hundred young people in the world were enrolled at universities, but over the course of the Twentieth Century this rose to one in five. It turns out that this enormous expansion of the higher education sector was not just the product of riches – it has helped fuel economic growth.
We compiled new data based on UNESCO’s World Higher Education Database detailing the location of 15,000 universities in 1,500 sub-national regions across 78 countries over the period 1950 to 2010. On average, doubling the number of universities in a region increases that region’s subsequent income by over 4%. There are also spillover effects to other regions in the same country, creating a growth multiplier.
In all OECD countries, higher education is financed by a mix of public contributions (e.g. income taxes levied on labour income) and private contributions (e.g. tuition fees paid by students). Often, the public share clearly dominates. However, within the last two decades almost half of the OECD countries have introduced or increased tuition fees. During the same period, the number of international students has risen rapidly.
In tertiary education systems that are partly publicly funded, there are two possible causal relationships between student migration and the financing of higher education. First, it may be that the migration decisions of students are affected by the extent of private contributions, e.g. tuition fees. While comparably high public contributions may attract students from abroad, high tuition fees can prevent young people from studying in a foreign country. The empirical evidence is however not fully clear. The contradictory state of research in this area motivated us to analyse whether the second causal link – namely, that student migration induces changes in governmental policies – may also be possible. Continue reading →