|Practice area:||Economics of Education | Education and Labour Markets | Further education|
|Keywords:||modelling quantitative analysis stakeholder surveys and consultations|
London Economics were commissioned by the Department for Business, Innovation and Skills to undertake a detailed econometric analysis of the impact of raising private fee contributions on participation in Further Education. The analysis was based on the survey of all Further Education Colleges in England, as well as a detailed analysis of the Individual Learner Record.
The analysis illustrated that the elasticity of demand for Further Education amongst those currently paying is relatively inelastic – ranging at between -0.1 and -0.4 depending on the model specification and data source used. There was some variation in the results depending on the type and subject of course, the extent of employer support and the personal characteristics of students.