Funding, efficiency and equity of tertiary education in Slovenia

Abstract

The paper is based on the fact that the system of funding tertiary education (TE) may have important influences on efficiency of educational institutions (internal efficiency), returns to education (external efficiency), aggregate enrolment, and social equity of TE (equity in access to TE for different socio-economic groups). Characteristics of the funding system of undergraduate tertiary education in the public institutions in Slovenia are presented. The paper also deals with the effects of the funding system on the above-mentioned dimensions of the TE development. The trends in enrolment are presented as well. We have observed that the funding system results in a low internal economic efficiency (expressed by students’ study progress) and social inequity, so we propose the changes in the funding of educational institutions and the state financial support to students in order to increase the efficiency and equity of TE. This may be achieved by an increase in private funding. All dimensions of TE observed in the paper (enrolment, expenditure, system of funding, internal and external economic efficiency, and equity) are analysed in the time perspective (trends within the country) and in international perspective (comparisons with the EU and OECD countries). The economic feasibility of the increased private funding is presented as well. The paper ends with summarizing the main conclusions.