The Economics of Education: From a Free Social Benefit to the Commercialization of Educational Services

Abstract

The article discusses the specific features characterizing the development of the market for commercial educational services under modern Russian conditions. The study finds that many parents have reacted negatively to the introduction of market forces to the education sector. Paid educational services provided by the school are not popular despite the fact that they offer a number of advantages. The results of the study have revealed a number of factors that have led to the expansion in the sector of informal education, includeing low teacher salaries, difficulties in registering a tutoring service business, the desire to reduce financial costs, and the fact that schools insufficiently prepare students to pass the Unified State Exam. The movement of students who seek assistance from the informal educational sector has placed a strain on the institutional relationships between students and teachers.