A note on the rising cost of education in Australia

Valadkhani, Abbas and Worthington, A. C. and Layton, Allan P. (2005) A note on the rising cost of education in Australia. Economic Papers: a Journal of Applied Economics and Policy, 24 (2). pp. 97-106. ISSN 0812-0439

Abstract

Human capital, or a better educated labour force, is a major determinant of economic growth and productivity. However, recent trends in the cost of education in Australia may cause growth and productivity to suffer. For example, during the period 1982-2003 inflation rose on average by 4.4 per cent per annum, whereas the cost of education grew overall on average by 7.8 per cent. This has made education a relatively expensive item among Australian households. This paper compares and contrasts the cost of education in Australia and comparable economies with the cost of other goods and services embedded in the CPI (Consumer Price Index) basket using the latest available quarterly data. Finally, the major determinants of the rising cost of education in Australia are examined. It is found, inter alia, that over the period 1986-2003 the increasing number of students enrolled at non-governmental primary and secondary schools and the introduction of the Higher Education Contribution Scheme (HECS) were two important determinants of the rising cost of education.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to published version due to publisher copyright policy.
Depositing User: bulkimport_other bulkimport_other
Faculty / Department / School: Historic - Faculty of Business - No Department
Date Deposited: 30 Nov 2007 16:01
Last Modified: 03 Jul 2013 00:25
Uncontrolled Keywords: cost of education; inflation; Australia
Fields of Research (FOR2008): 16 Studies in Human Society > 1605 Policy and Administration > 160506 Education Policy
14 Economics > 1402 Applied Economics > 140211 Labour Economics
14 Economics > 1402 Applied Economics > 140204 Economics of Education
Socio-Economic Objective (SEO2008): B Economic Development > 91 Economic Framework > 9102 Microeconomics > 910202 Human Capital Issues
URI: http://eprints.usq.edu.au/id/eprint/17972

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