Carpentier, V; (2006) Funding in Higher Education and Economic Growth in France and the United Kingdom, 1921-2003. Higher Education Management and Policy , 18 (3) pp. 1-26.

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Abstract

The 2004 Higher Education Act generated important debates about the relationships between higher education (HE), economic growth and social progress. The range of positions expressed in relation to the increase of annual tuition fees raises crucial questions about the public and private funding of HE and its individual and social economic benefits. The analysis of new historical data from the 1920s onwards shows that the expansion in university resources was not linear and may be related to long economic cycles. Moreover, private funding periodically increased in order to replace diminishing public funding, rather than taking the form of additional resources. In consequence, private funds did not provide an overall rise in the universities? income. The considerable fluctuations of funding, combined with a more consistent growth of enrolment, led to a recurrent mismatch between resources for and access to HE, explaining the wide fluctuations of resources per student over the period. Such historical trends question whether, in the future, increased fees will be a substitute for public spending. Or will variable fees rather combine with even greater increases in public funding as part of a national project to support HE students from all social backgrounds and to boost expenditure per student?

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