AN INNOVATIVE MODEL OF FUNDING THE EDUCATION SYSTEM

Jan Polcyn, Stanislaw Staszic University of Applied Sciences in Pila


ABSTRACT: This article shows that the effectiveness of the education system can be measured
without taking into account the socio-economic environment of students. The use of AVE
(Educational added value), which is a measure of the aforementioned effectiveness of the
education system, should be accompanied by an analysis of the level of local socio-economic
development. These formulations include a certain inconsistency. It stems from the fact that the
modelling of AVE using previous educational achievements of students (at the preceding stage)
does not take into account the impact of variables modifying these educational achievements. It
is assumed that a student’s individual family, economic and social situations do not change so
rapidly as to affect their educational attainments in the next stage of education. However,
research conducted in Poland show that socio-economic variables in areas of local government
units strongly modify the AVE. This phenomenon was the reason for proposing the correction in
the system of education funding. The proposed model of funding education takes into account the
qualitative factors of educational processes. The implementation of such a model should, in the
long term, improve the quality of human capital in society.

KEYWORDS: educational production function, AVE(Educational Added Value), financing model

JEL CODES: H52, I21, I22, I29