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The movement toward government-subsidized academia indeed has a deep historical context in France going back to 1985. President François Mitterrand (1981-1995) followed the Keynesian dogma of his Minister of Education Jean-Pierre Chevènement, according to which more students means higher levels of employment, higher salaries, and greater purchasing power. To achieve this goal, the government sought to push the number young people in higher education to 80%.
However, some young people who do not live near a university, can't afford the living costs and tuition, or simply don't want to pursue a degree will not necessarily attend a university. So Mitterrand did what he could do best: spend as much money as possible. Today, tuition fees vary. For some students they tend towards €15, but even international students don’t pay more than €200 for a year. Student subsidies also vary, but an average student now makes between €250-400 a month and a housing stipend of up to €175.
Despite these efforts, the French economy has been falling behind ever since these initiatives began and youth unemployment has had drastic ups and downs. Compare that to the United Kingdom, which didn’t support their students with welfare and managed to maintain lower unemployment and recover more quickly after recessions. This has to do with the British tendency to allow more flexibility in the labor market, which makes it easier for young people to enter the workforce.
Read more:
France Shows That "Free" College Is Neither Free Nor Fair | Foundation for Economic Education
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