Tuition Fees: Target education funds according to need

Economist Vesa Vihriälä has proposed introducing tuition fees for Finnish higher education institutions, citing the state's inability to fund necessary expansion. Vihriälä suggests that resources should be allocated based on need, making the transfer of funding between educational levels a viable option. He believes this can be done without negatively impacting secondary education, as all students should be prepared for adulthood regardless of funding shifts.

Historically, from 1990 to 2020, funding for vocational education in Finland grew by over four times in real terms. In contrast, university funding increased by only about 20%. During the same period, the structure of the labor market has shifted, with a decreasing relative need for vocational graduates and an increasing demand for those with higher education degrees. Furthermore, the size of age cohorts entering secondary education has declined.

Given these trends, it is reasonable to assess that significant funds could be transferred from vocational training to expand higher education without diminishing the opportunities for secondary education students. This reallocation aligns with the principle of directing resources where they are most needed.