Higher education markets and public policy

Abstract

In the major reforms to higher education being introduced throughout the world, market and “market life” policy instruments are assuming increasing importance. Long perceived as a unique characterstic of the U.S system of higher education, experiments with market competition in academic labor markets, institutional finanace, student support, and the allocation of the resaerch funds are now evident in the higher education policy of many different nations. Ironically, the overt rationale for these reforms is not only the traditional argument of economic effiency—with its supposed corollary benefits of institutional adapation and innovation—but increase a resort to market competition as a means of acheving equity in the form of mass higher education. The paper explores the nature of markets in higher education, the policy mechanisms related to their implementation, and some emerging questions regarding their impact.