Demand stimulus for education participation

The strategic agenda for higher education seeks to increase the participation of workers in higher education. This research examines the effects of a concrete measure to achieve this goal: demand-driven funding via a voucher.

If extended education funding is based on demand, instead of supply, training participation in higher vocational education rises with 9 to more than 17 thousand people, 6% to 11% of the total number of training participants in this market segment. Earlier SEO Research estimated that privatization of part-time education at universities of applied sciences provides a saving of € 214 to € 321 million. With a voucher of € 1,000 per participant the government realizes a net saving of € 45 million to € 160 million, because the costs of the voucher are less than the benefits of privatization.

A voucher for the entire higher education, so including university education, has higher costs and increases participation with 12 to 24 thousand participants. This kind of financing higher education based on demand can be introduced budget neutral at a voucher worth €1000 in combination with privatization of part-time university of applied sciences education.