Milton Friedman and the finance of higher education

Barr, Nicholas (2016) Milton Friedman and the finance of higher education. In: Cord, Robert and Hammond, J. Daniel , (eds.) Milton Friedman: Contributions to Economics and Public Policy,. Oxford University Press, Oxford, UK, pp. 436-463. ISBN 9780198704324

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Abstract

Friedman and Kuznets (1945) posed the puzzle that the return to investment in human capital was higher than to physical capital. They hypothesised a distortion causing under-investment in human capital and made brief mention of the idea that individuals might sell ‘shares’ in their future income to finance their investment in human capital. Friedman (1955) explored the idea in more detail, setting out the first worked out proposal for income-contingent repayments. After discussion of today’s context, successive sections of this chapter discuss the nature of Friedman’s idea, assess its impact on policy, and set out a view to the future, including future design options and potential theoretical work.

Item Type:	Book Section
Official URL:	https://global.oup.com/academic/?lang=en&cc=gb
Additional Information:	© 2016 Oxford University Press
Library of Congress subject classification:	H Social Sciences > HG Finance L Education > L Education (General)
Sets:	Departments > Economics
Date Deposited:	08 Jul 2016 09:55
URL:	http://eprints.lse.ac.uk/67083/

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