International Comparisons in Higher Education Funding

The use of appropriate indicators of public and private expenditures, from which statistically significant differences in funding policies can be identified, constitutes a solid foundation in which the assessment of the role of governments in promoting higher education can be grounded. Based on a carefully selected set of Organization for Economic Co‐operation and Development indicators, this paper explores the effects of education funding policies, along with research and development expenditures and tax levels, on the entry rate to higher education. The results from the statistical analysis of the data confirm the existence of two distinct approaches to higher education funding, the Scandinavian approach and Anglo–American approach, and help to define their characteristics.