Bìznes Inform (May 2020)
The Role of Indicative Self-Cost in the Formation of the Market of Educational Services in Ukraine
Abstract
The publication takes into consideration the current status of the Ukrainian educational services market, it is focused on the competitive relationship between public and private higher education. The dominant tendencies in the transformation of higher education sphere are shown. A detailed analysis of the mechanism for the formation of a minimum tuition fee for higher education is carried out in the context of the introduction of indicative self-cost. Based on the statistics observations of the distribution of the level of average monthly wages in the regions of Ukraine and the city of Kiev, a comparison of the minimum wage (minimum indicative self-cost) for tuition in the specialty 051 «Economics» (ES «Bachelor», day form of training) with the average cost of education in the same specialty for 2019 is carried out. It is displayed that only in three regions the minimum cost is less than the cost of training under the contractual terms in the specialty 051 «Economics», and for two of these three regions the figures are almost equal. Based on the graphic representation of supply and demand curves for private and public education, the possible consequences of the introduction of indicative self-cost of educational services (training) are presented. It is shown that for three regions the introduction of indicative self-cost in 2020 can have a moderate impact on the redistribution of students studying according to the contractual form in favor of private education. However, for all other regions, and especially for the city of Kiev, there will be significant changes in favor of private education, provided there are licensed places in the private HEI, both the existing ones and the established in 2020.
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