Erez Cohen,

Ariel University, Israel

E-Mail: erez@ariel.ac.il

HIGHER EDUCATION BETWEEN GOVERNMENT POLICY AND FREE MARKET FORCES: THE CASE OF ISRAEL

Nitza Davidovitch,

Ariel University, Israel

E-Mail: d.nitza@ariel.ac.il

ABSTRACT. In recent years Israel’s system of higher education has undergone a revolutionary transformation, leading to a sharp rise in the number of students, establishment of new degree-granting institutions, and shifts in legislation and policy. All these have changed dramatically, arousing pro- found public debates centering on one major issue: how to reconcile academic freedom, as manifested in a free academ- ic “market”, with the regulation of higher education. This study explores three main processes that occurred within Israel’s higher education system since the reform in the early 1990s and attempts to identify their causes. The research findings show that it was the government’s decision to carry out a reform, rather than free market forces that led to the considerable rise in the number of applicants for academ- ic studies. However, free market sources were found to af- fect admission terms to the various departments, guided by trends of demand and supply.

Received: December, 2014

1st Revision: January, 2015 Accepted: March, 2015

DOI:10.14254/2071- 789X.2015/8-1/20

JEL Classification: A2, I2

Keywords: Public Policy, Higher Education, Israel, free market forces, regulation