Private Higher Education and Economic Development

Abstract

In Western Europe, especially in Germany, private higher education is generally perceived as an alternative to public higher education for students from relatively affluent families; more broadly, there is a general perception that attending a private higher education institution is correlated to wealth. This perception is influenced by private higher education in the US, which is the world's most visible private system, but also probably the most atypical. In this article, we will analyse the relationship between private higher education attainment and the wealth of nations as reflected by their per capita GDP. We will try to relate the indicators in models that use cross‐sectional transnational data as well as time series analysis for four contrasting countries (Chile, Germany, Romania, and the US). We will address two questions: (1) do wealthier nations have a higher percentage of enrolment in private higher education? and (2) does enrolment in private higher education grow with economic growth? Our analysis shows that a simple general relationship between enrolment in private higher education and the wealth of nations does not exist.

Universidad pública frente a universidad privada ¿qué efectos tiene sobre el éxito profesional de los universitarios españoles?

“…Since the cost of education at a private university is higher than that at a public university, it could be said that private universities provide an educational alternative mainly for families with a greater purchasing power. However, the existence of private universities can be seen as being an alternative option to public universities when the public higher education system does not have sufficient capacity to cater for the demand (Reisz and Stock, 2012). A positive correlation between per capita income and enrolments in private universities could be expected in connection with the purchasing power consideration, while according to the ability of the public sector to cater for society's needs, the relationship would be negative: the lower the standard of living of a country, the lower the availability of university education by the public sector, which would encourage the private sector to make alternative courses available (Reisz and Stock, 2012).…”

“…However, the existence of private universities can be seen as being an alternative option to public universities when the public higher education system does not have sufficient capacity to cater for the demand (Reisz and Stock, 2012). A positive correlation between per capita income and enrolments in private universities could be expected in connection with the purchasing power consideration, while according to the ability of the public sector to cater for society's needs, the relationship would be negative: the lower the standard of living of a country, the lower the availability of university education by the public sector, which would encourage the private sector to make alternative courses available (Reisz and Stock, 2012). In Spain, private universities are also interested in offering courses in specific degrees for which the high academic requirements by public universities prevent many students from enrolling in them (Moreno, 2005).…”

“…Specifically, do private university students obtain a comparative advantage over public university students in their entry into the labour market and subsequent professional success? According to Reisz and Stock (2012), research on private universities is a very recent development. In the Encyclopedia of Higher Education , Levy identified only two case studies, and Maldonado- Maldonado et al (2004) confirmed the lack of studies on the subject in the Bibliography of Private Higher Education.…”

“…The basic conclusion is that being educated in a private university either does not improve job success in relation to public universities at all, or it provides immaterial improvement, except in the case of the American university system (Monks, 2000). An exception to this analytical approach in terms of the individualised effect of universities is the study by Reisz and Stock (2012) mentioned above.…”

Scientific Research in the Higher Education in Albania in Lieu of the Bologna Process: The Case of the European University of Tirana

“…The discussion about the private higher education in Albania is new, but this is not only an Albanian phenomenon. In the past few years, private higher education has become an important topic in public discourse on higher education (Reisz & Stock, 2012). Even though private higher education institutions in Albania lack established experience in scientific research, they have more opportunities and freedom regarding decision-making processes compared to public higher education institutions.…”