Abstract

The purpose of this study is to estimate the appropriate amount of investment in higher education using major higher education indicators. Existing studies on the size of investment in higher education have limitations in that they do not take into account the actual environmental variables of higher education by only considering individual programs at a micro level or estimating only GDP. Accordingly, this study evaluated the impact of calculation-participation-financial-environmental variables based on OECD's major higher education indicators, and estimated the optimal size of domestic higher education investment by applying the expansion of existing calculation formula. As a result of the study, it was found that the appropriate investment in higher education calculated when only GDP was taken into account still needs to be increased compared to the actual size, and it is far below the OECD average. However, when considering the change in the school-age population, the appropriate size was found to be more similar to the actual support size. Since then, when the major factors of higher education are taken into account, it found that a higher level of appropriate investment in higher education than the conventional method is required. Although it is still below the OECD average, it is higher than the case where only GDP is taken into account. Based on this, various implications for estimating the optimal investment size linked to the higher education index will be discussed.

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