Higher Education Investment Fund: A New Approach for the Private Financing of Higher Education

Abstract

Developed countries spend between 4.6 and 8 percent of GDP on education (OECD, 2013). Despite the fact that not all education expenses are covered by the Organisation for Economic Cooperation and Development (OECD) measures (FiBS/DIE, 2013), the actual financial need is far higher for a number of reasons. One is that, in almost all countries, many children do not attend early childhood education. This is true even for three- to five- or six-year-old children and, to a much greater extent, for those children younger than three. Since the basic foundations for future education on attainment are laid here, the share of children, especially from disadvantaged families, has to be increased significantly. Research from various fields indicates that particular investments in early childhood are particularly profitable (Cunha et al., 2006).