Dr. Gallegos-Mardones, Juan

Financial vulnerability can be understood as the risk of an organisation being unable to carry out routine its normal operations due to financial restrictions. Models to estimate financial vulnerability have mainly been developed for profit-making organisations, while few exist for non- profit organisations (NPOs). One example is higher education institutions, which have experienced important changes in Latin America through gratuity policies for student tuition. This study proposes a model to estimate the effects of gratuity on financial vulnerability, as previous studies have focused on the effects of enrolment. A binary logistic regression model is proposed, considering the following variables: debt, income concentration, operating margin, administration costs, and square metres of rooms per student. We applied this model to 54 universities between 2013 and 2019. The results showed that the model is relevant for the debt, size, and operating margin variables. Additionally, we observed that on average, all universities were negatively affected. This result is particularly true for state-owned universities because of certain management restrictions. A limitation of this study is the unavailability of other sources of non-financial information, such as each university’s business model and stock of strategic resources, which could improve our model, as this information is more related to control than to management.

Since the 1980s, numerous transformations in higher education were experienced in Latin America, and especially in Chile, a country that allowed private entities to enter the education systems and develop a market. The opportunity triggered an increase of coverage and competition to capture and retain students, followed by marketing strategies delivering student satisfaction and pursuing student loyalty. Moreover, since 2012, higher education institutions in Chile have been allowed to adopt a policy of gratuity, giving families the co-responsibility of dealing with the cost of education. So, some institutions adopted gratuity and continued receiving funds from the state, but others did not, relying instead on family income. The split in the financial responsibility of higher education seems to have generated varied reactions from the students and their families, including their satisfaction with and loyalty to the institution. Despite the abundant literature on higher education, however, a few studies attempt to explain and compare student satisfaction and loyalty across types of institutions, such as those that opted for gratuity versus those that did not. This study examines a set of relevant attributes for understanding that phenomenon; attributes such as quality of service, satisfaction, trust, commitment, and loyalty. The results reveal a prevalence of trust and familiarity among the students attending an institution with gratuity. In contrast, the results demonstrate a preponderance of commitment and satisfaction among the students attending a non-gratuity institution that relies on family, private, and personal funds to support their education.

Many higher education systems require students to take admission exams, which are considered good predictors of academic performance. However, in Latin America, their use has been criticised for promoting socioeconomic segregation and favouring students of higher socioeconomic levels. This research complements the higher education admission process by using alternative measures of relative performance that promote greater equity in the system and allow access to higher education for more vulnerable sectors. A longitudinal study of students in Chile taking the University Selection Test (P.S.U.) and estimations of ordinary least squares (O.L.S.) in two stages were conducted. We found that the use of new measures of performance allows those more vulnerable students from public schools to reach equal and/or superior levels of relative performance than their peers from private schools. The practical implications of this research relate to recognising that good students can also attend public schools and that those students who have the capability can enter higher education, independent of their economic situations.

Antecedentes: Los sistemas de vales en educación se basan fundamentalmente en la capacidad de los padres para elegir la escuela de sus hijos. Sin embargo, esta capacidad se reduce cuando enfrentan costos de cambio. Método: Se identificaron los datos de los estudiantes que cursaban cuarto grado en 2000 y octavo grado en 2004, y se verificó si estos, habían cambiado de escuela. Además, comparamos la utilidad que reporta la escuela elegida con respecto a otras, no disponibles en 2000, determinando así la existencia de costos de cambio. Resultados: Encontramos que los costos de cambios son estadísticamente significativos y económicamente relevantes, además, afectan la decisión de cambiar de escuela. También mostramos qué cambios marginales en niveles de utilidad no son suficientemente significativos para cambiar de escuela identificando un eventual umbral. Conclusiones: La preocupación natural de los padres con respecto a la capacidad de reacción está condicionada por la existencia de costos de cambio.