Economics

Introduction

Tertiary education has become gradually important due to that educational attainment is a frequently used as the stock of human capital, which represents the resources available in the population and the labour force. Moreover, the fee of the undergraduate degree has been a debatable issue. Therefore this report is conducted for the reason of analysing the critical overview of the economic case for subsidization of domestic student’s undergraduate fees by the government.

Undergraduate degree attainment rates in Australia

Figure.1 Future trend of the attainment rate

Source: Australian Government (2009)

It is found through the Commonwealth of Australia 2009 report that in the past two decades Australia has increased in there rate of undergraduate degree attainment rate. According to the figure 1, the recent attainment rate for bachelor-level degrees of 25 to 34 year olds located at around 32 per cent, with the assistance of the present policy the Australia undergraduate degree retainment rate is expected to be rise slightly onto around 34 per cent by 2025. (Australian Government, 2009) Yet this is improbable to be enough to reach our prospect economic needs. Therefore the government had established their target level of attainment rate. It was stated by the Edwards in 2013 that “The Government aims to increase attainment rates for 25-34 year olds, from the current 32% to 40% by 2025.”

Figure.2 the percentage of 25-34 year-olds who have been through tertiary education (2010)

Source: OECD (2010)

It can be perceived through the figure 2, that Australia is ranked 9th out of 25 in the section of 25-34 years old with bachelor-level of or above qualifications within the OECD countries. The rate of it have undergraduate degree attainment rate have increase to around 44 per cent. According to this graph, it also indicates that Australia undergraduate degree attainment rate still stand above the OECD countries average rate.

Economic Model...