№ 10/2018

Fìnansi Ukr. 2018 (10): 44–53

FINANCE OF EDUCATION AND SCIENCE

ERFORT Olga ¹, ERFORT Irina ²

¹Donbass State Engineering Academy
²Donbass State Engineering Academy

Assessment of the structure of higher education financial sources in the context of social fairness

The article suggests a methodical approach for assessing social fairness of sharing costs for higher education between public and private financial sources. The authors of the article shift the focus from the society in general towards businesses and specialists with higher education degrees regarding them as the key economic agents gaining benefits from raising productivity and bearing expenditure on financing the sector of higher education. The sequence of equations suggested in the article allows figuring out and comparing the ratios of profitability of investments in higher education – the indicators of fairness of sharing costs – for businesses and specialists with higher education degrees . The analysis carried out for Ukraine reveals great disproportions and unfairness in the structure of financial sources. On one hand, these disproportions can be explained by the conventional for all countries tax policy that shifts the main bulk of tax burden towards individuals while leaving businesses more freedom to spend their profits. On the other hand, such a policy can be profoundly ineffective in Ukraine with its oligarchic regime because a small group of the richest makes huge profits without any obligation to invest in the economy. The research shows that the additional tax revenue contributed to the higher labour productivity of specialists with higher education degrees in Ukraine exceeds the total amount of expenditure in this sector. The authors draw a conclusion that raising additional resources from the business sector will help to move towards fairer proportions of sharing costs for higher education in Ukraine.

Keywords:expenditure on higher education, sources of higher education financing, cost-sharing, mixed financing, social fairness

JEL: H42, I22, I26, I28

Erfort O. . Assessment of the structure of higher education financial sources in the context of social fairness / O. Erfort, I. Erfort // Фінанси України. - 2018. - № 10. - C. 44-53.

Article original in Ukrainian (pp. 44 - 53)

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