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Expert Network on Economics and Sociology of Education and Training (ENESET)
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Financing lifelong learning: funding mechanisms in education and training

This report reviews funding mechanisms across education levels in Europe, assessing their efficiency, equity, and sustainability, with a strong focus on lifelong learning and adult education.

Details

Publication date
20 September 2011
Authors
Directorate-General for Education, Youth, Sport and Culture | European Expert Network on Economics of Education (EENEE)
Geographical scope
  • European Union
Level of education focus
  • Adult education
  • Higher education
  • School education
Thematic areas covered
  • Education-to-work transitions, education and labour market
  • Educational attainment and participation in education
  • Educational effectiveness and efficiency
  • Governance of education
  • Investment in education, economic impact of education
  • Lifelong learning
  • Monitoring and quality assurance
  • Quality and inclusive education for all
  • Skills development
  • Whole-school and whole-system approaches and partnerships in education

Description

The report provides an empirical overview of education funding mechanisms in Europe, covering primary, secondary, higher, and adult education. It compares centralized and decentralized funding models, highlighting their trade-offs between equity and efficiency. 

In higher education, it examines student responses to tuition fees and aid, finding behavior consistent with rational investment models. 

For adult learning, the study evaluates instruments such as vouchers, individual learning accounts, and tax deductions, identifying income tax deductions as the most effective. The evidence suggests that availability alone does not incentivize low-skilled adults to train. Many instruments show high deadweight losses, with subsidized training often replacing privately funded training. 

The report calls for evidence-based policy using credible impact evaluation designs.

Authors

Torberg Falch & Hessel Oosterbeek

Cite as

Falch, T., Oosterbeek, H. (2011), Financing lifelong learning: Funding mechanisms in education and training, EENEE report.

Cover

Files

  • 20 SEPTEMBER 2011
Financing lifelong learning: funding mechanisms in education and training - Analytical report
  • 31 JANUARY 2012
Financing lifelong learning: funding mechanisms in education and training - Policy brief