Graduate Winners provides a framework for public spending on higher education. It sets out when public benefit or fairness considerations justify public spending.
Public benefits include higher tax revenues, graduates using their skills to assist others, and general attributes such as greater civic engagement and tolerance. In theory, government spending on higher education can create public benefits by encouraging more people into higher education, or steering students towards courses providing in-demand skills.
In practice, tuition subsidies do not necessarily achieve these goals. Tuition subsidies work by making higher education more financially attractive. However, graduates earn significantly more than people with school or vocational education. Additional incentives to take higher education courses are unnecessary.
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