6 - Means Testing: The Dilemma of Targeting Subsidies in African Higher Education
Journal of Higher Education in Africa,
Vol. 2 No. 2 (2004): Journal of Higher Education in Africa
Abstract
Means testing, a form of subsidy targeting, attempts to distribute at least some higher education subsidies on the basis of need or estimated ability to pay. This article explores the major principles, approaches, and challenges as well as some of the controversies surrounding means testing, taking into account the unique context of the African continent. For example, in many African countries incomes are not only low but are also frequently hidden or partly in kind. Assets are often both minimal and extremely illiquid. These conditions limit possible cash contri- butions toward higher education but also make it difficult to measure and to verify the subsidies to which many families are entitled. Therefore, many developing countries complement measures or estimates of income and assets with so-called categorical indicators of need (e.g., race/tribe/ethnicity, parents’ education, type of employment, secondary school attendance, possession of an automobile or access to a car driver) which are readily observable and more difficult to hide than con- ventional measures of incomes or assets. This article acknowledges some imper- fection in these measures but argues that rough justice in estimating ability to pay is still preferable to equal subsidies for all. It concludes with some recommenda- tions about targeting subsidies to higher education in Africa.
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- Atkinson, A. (1995). On targeting social security: Theory and western experience with family benefits. In D. Walle & K. Nead (Eds.), Public spending and the poor (pp. 25-69). Baltimore: Johns Hopkins University Press.
- Baum, S. (1999). Need analysis: How we decide who gets what. In J. King (Ed.), Financing a college education: How it works, how it’s changing (pp. 48-63).
- Phoenix, AZ: American Council for Education/Oryx Press. CHED. (2001). Commission for Higher Education (Philippines) website: http://www.ched.gov.ph/scholarships/local.html. Consulted March 2001.
- Cornes, R. (1995). Measuring the distributional impact of public goods. In D. Walle & K. Nead (Eds.), Public spending and the poor (pp. 69-90). Baltimore: Johns Hopkins University Press.
- Creech J., & Davis, J. (1999). Merit-based versus need-based aid: The continual issues for policy makers. In J. King (Ed.), Financing a college education: How it works, how it’s changing (pp. 120-136). Phoenix, AZ: American Council for Education/Oryx Press.
- Dick, A., & Edlin, A. (1997). The implicit taxes from college financial aid. Journal of Public Economics, 65, 295-322. Japan Scholarship Foundation. (2001). Website:http://www.mext.go.jp/english/org/formal/05f.htm. Consulted March 2001. English translations provided by Hiroshi Ota, Department of Educational Leadership and Policy, State University of New York at Buffalo.
- Johnstone, D. B. (1986). Sharing the costs of higher education: Student financial assistance in the United Kingdom, the Federal Republic of Germany, France, Sweden, and the United States. New York: College Entrance Examination Board.
- Johnstone, D. B. (2002). Challenges of financial austerity: Imperatives and limitations of revenue diversification in higher education. In M. Woodhall (Ed.), Paying for learning: The debate on student fees, grants and loans in international perspective (pp. 18-36). Special international issue of The Welsh Journal of Education, 11(1).
- Johnstone, D. B. (2003a, June). Cost-sharing in higher education: tuition, financial assistance, and accessibility. Czech Sociological Review, 39(3), 351-374.
- Johnstone, D. B. (2004). Higher education finance and accessibility: Tuition fees and student loans in sub-Saharan Africa. Journal of Higher Education in Africa, 1(2), this issue.
- Kanbur, K., Keen, M., & Toumala, M. (1995). Labor supply and targeting in poverty alleviation programs. In D. Walle & K. Nead (Eds.), Public spending and the poor (pp. 93-113). Baltimore: Johns Hopkins University Press.
- Lind, J., & Gilroy, P. (1997, Fall). Needs analysis benefits the affluent. Journal of College Admission, 157, 5-7.
- Mayanja, M. (1998). The social background of Makerere University students and the potential for cost sharing. Higher Education, 36, 21-24.
- McMahon, W. (1988). Potential resource recovery in higher education in the developing countries and the parents’ expected contribution. Economics of Education Review, 7(1). (pp. 135-152).
- Merisotis J., & Wolanin, T. (2002). Means testing: Is it viable in eastern and southern Africa? In B. L. M. Mwamila, I. Omari, and E. Mbuya (Eds.), Financing higher education in eastern and southern africa: Diversifying revenue and expanding accessibility. Dar es Salaam: University of Dar es Salaam (pp. 146-155).
- Nichols, A., & Zeckhaser, R. (1982). Targeting transfers through restrictions on recipients. American Economic Review, 72(2), 372-377.
- Schultz, P. (2001). Higher education in Africa: Monitoring efficiency and improving equity. Unpublished paper for the Conference on International Higher Education and African Development, Yale Center for International and Area Studies, October 18-21, 2001, Yale University.
- Sen, A. (1995). The Political Economy of Targeting. In D. Walle & K. Nead (Eds.), Public spending and the poor (pp. 11-24). Baltimore: Johns Hopkins University Press.
- Walle, D. (1995). Introduction. In D. Walle & K. Nead (Eds.), Public spending and the poor (pp. 1-5). Baltimore: Johns Hopkins University Press.
- Ziderman, A., & Albrecht, D. (1995). Financing universities in developing countries. Washington, DC: Falmer Press
References
Atkinson, A. (1995). On targeting social security: Theory and western experience with family benefits. In D. Walle & K. Nead (Eds.), Public spending and the poor (pp. 25-69). Baltimore: Johns Hopkins University Press.
Baum, S. (1999). Need analysis: How we decide who gets what. In J. King (Ed.), Financing a college education: How it works, how it’s changing (pp. 48-63).
Phoenix, AZ: American Council for Education/Oryx Press. CHED. (2001). Commission for Higher Education (Philippines) website: http://www.ched.gov.ph/scholarships/local.html. Consulted March 2001.
Cornes, R. (1995). Measuring the distributional impact of public goods. In D. Walle & K. Nead (Eds.), Public spending and the poor (pp. 69-90). Baltimore: Johns Hopkins University Press.
Creech J., & Davis, J. (1999). Merit-based versus need-based aid: The continual issues for policy makers. In J. King (Ed.), Financing a college education: How it works, how it’s changing (pp. 120-136). Phoenix, AZ: American Council for Education/Oryx Press.
Dick, A., & Edlin, A. (1997). The implicit taxes from college financial aid. Journal of Public Economics, 65, 295-322. Japan Scholarship Foundation. (2001). Website:http://www.mext.go.jp/english/org/formal/05f.htm. Consulted March 2001. English translations provided by Hiroshi Ota, Department of Educational Leadership and Policy, State University of New York at Buffalo.
Johnstone, D. B. (1986). Sharing the costs of higher education: Student financial assistance in the United Kingdom, the Federal Republic of Germany, France, Sweden, and the United States. New York: College Entrance Examination Board.
Johnstone, D. B. (2002). Challenges of financial austerity: Imperatives and limitations of revenue diversification in higher education. In M. Woodhall (Ed.), Paying for learning: The debate on student fees, grants and loans in international perspective (pp. 18-36). Special international issue of The Welsh Journal of Education, 11(1).
Johnstone, D. B. (2003a, June). Cost-sharing in higher education: tuition, financial assistance, and accessibility. Czech Sociological Review, 39(3), 351-374.
Johnstone, D. B. (2004). Higher education finance and accessibility: Tuition fees and student loans in sub-Saharan Africa. Journal of Higher Education in Africa, 1(2), this issue.
Kanbur, K., Keen, M., & Toumala, M. (1995). Labor supply and targeting in poverty alleviation programs. In D. Walle & K. Nead (Eds.), Public spending and the poor (pp. 93-113). Baltimore: Johns Hopkins University Press.
Lind, J., & Gilroy, P. (1997, Fall). Needs analysis benefits the affluent. Journal of College Admission, 157, 5-7.
Mayanja, M. (1998). The social background of Makerere University students and the potential for cost sharing. Higher Education, 36, 21-24.
McMahon, W. (1988). Potential resource recovery in higher education in the developing countries and the parents’ expected contribution. Economics of Education Review, 7(1). (pp. 135-152).
Merisotis J., & Wolanin, T. (2002). Means testing: Is it viable in eastern and southern Africa? In B. L. M. Mwamila, I. Omari, and E. Mbuya (Eds.), Financing higher education in eastern and southern africa: Diversifying revenue and expanding accessibility. Dar es Salaam: University of Dar es Salaam (pp. 146-155).
Nichols, A., & Zeckhaser, R. (1982). Targeting transfers through restrictions on recipients. American Economic Review, 72(2), 372-377.
Schultz, P. (2001). Higher education in Africa: Monitoring efficiency and improving equity. Unpublished paper for the Conference on International Higher Education and African Development, Yale Center for International and Area Studies, October 18-21, 2001, Yale University.
Sen, A. (1995). The Political Economy of Targeting. In D. Walle & K. Nead (Eds.), Public spending and the poor (pp. 11-24). Baltimore: Johns Hopkins University Press.
Walle, D. (1995). Introduction. In D. Walle & K. Nead (Eds.), Public spending and the poor (pp. 1-5). Baltimore: Johns Hopkins University Press.
Ziderman, A., & Albrecht, D. (1995). Financing universities in developing countries. Washington, DC: Falmer Press