Subsidies on Student Effort
Sahin carried out a research on the effects of higher education subsidies on efforts of the students. He uses the rhetoric model in analyzing the effects caused by tuition subsidies and policies on the efforts that students show. The author found out from the research he carried out that tuition subsidies leads to increased enrollment rates although it causes reduced students efforts. This results from the high percentage of less able and less graduates who are motivated. Students tend to respond to low tuition levels through decreasing their efforts rapidly. From the study, that Sahin carried out it is evident that high subsidy and policies of low tuition have effects on the study time that students have and as well affects capital accumulation (Şahin 8).
Higher education has always had a goal of promoting enrollment in colleges through reducing the tuition costs. However, if there are subsidizes on tuition in the end affects the efforts that students put in their academic work. Sahin realized that subsidies in the United States usually are in two forms. One is on loan programs, and the other is on operating subsidies. The author comes to the conclusion that the tuition subsidies are good for enrollment rates but causes adverse effects on accumulation of human capital. Other researchers also have concluded just like Sahindid after carrying out their research. All students even those who were initially highly motivated decrease the time they spend studying. From the research results, a 10% tuition decrease leads to a 5% decrease in study time for every student (Şahin 12). Although this research was carried out, there is a need for more research in the future. I think even though tuition subsidy causes low levels of study in students it has a positive influence on some aspects of a student’s life such as allowing enough time to relax so that new things that are taught can be taken in easily.
Şahin, Ayşegül."The Incentive Effects of Higher Education Subsidies on Student Effort."Federal Reserve Bank of New York Staff Reports (2004): 1-37.