Financing Lifelong Learning

Abstract

This paper describes and analyzes
 different financial schemes to promote lifelong learning.
 Considered are financial instruments to stimulate successful
 early learning, financial aid schemes and subsidization
 mechanisms. Theoretical analyses about funding of early
 learning have mainly focused on vouchers. Yet, the available
 empirical evidence is more ambiguous about the effects of
 vouchers than about the effects of conditional cash
 transfers and financial incentives for pupils and teachers.
 Positive effects of financial incentives to pupils are not
 restricted to high ability pupils, as low ability students
 also seem to benefit. The evidence regarding the effects of
 subsidy forms is limited. The most prominent knowledge gaps
 regarding the effects of various financing schemes related
 to lifelong learning are the effects of vouchers in
 compulsory education; financial aid schemes for students;
 and entitlements and individual learning accounts.