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The Political Economy of Higher Education: An ‘Austrian’ Aalysis
Author(s) -
BARRY NORMAN
Publication year - 1983
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.1983.tb01515.x
Subject(s) - severance , staffing , investment (military) , incentive , payment , politics , business , state (computer science) , market economy , labour economics , economics , private sector , finance , management , economic growth , political science , algorithm , computer science , law
One of the most wasteful inefficiencies of the nationalised industries is that, isolated from price signals in the market, they make mistaken investment decisions. State‐run higher education is no different. Excessive investment, following the Robbins Report of 1963, has resulted in over‐staffing, but university ‘managers’– vice‐chancellors, heads of department, etc. – have no incentive to maximise efficiency by firing less desirable members of staff. It is the better qualified lecturers who are leaving, bribed with severance payments, to take up jobs in the private sector.