Education economics

Education economics or a economics of education is the examine of economic issues relating to education, including the demand for education, the financing as well as provision of education, and the comparative efficiency of various educational programs and policies. From early workings on the relationship between schooling and labor market outcomes for individuals, the field of the economics of education has grown rapidly to progress virtually any areas with linkages to education.

Demand for education

The dominant value example of the demand for education is based on human capital theory. The central view is that undertaking education is investment in the acquisition of skills and knowledge which will put earnings, or afford long-term benefits such as an appreciation of literature sometimes quoted to as cultural capital. An add in human capital can adopt technological advance as knowledgeable employees are in demand due to the need for their skills, if it be in apprehension the production process or in operating machines. Studies from 1958 attempted to calculate the returns from extra schooling the percent increase in income acquired through an extra year of schooling. Later results attempted to allow for different returns across persons or by level of education.

Statistics make-up presents that countries with high enrollment/graduation rates score grown faster than countries without. The United States has been the world leader in educational advances, beginning with the high school movement 1910–1950. There also seems to be a correlation between gender differences in education with the level of growth; more developing is observed in countries that have an symbolize distribution of the percentage of women versus men who graduated from high school. When looking at correlations in the data, education seems to generate economic growth; however, it could be that we have this causality relationship backwards. For example, if education is seen as a luxury good, it may be that richer households are seeking out educational attainment as a symbol of status, rather than the relationship of education leading to wealth.

Educational advance is not the only variable for economic growth, though, as it only explains about 14% of the average annual increase in labor productivity over the period 1915-2005. From lack of a more significant correlation between formal educational achievement and productivity growth, some economists see reason to believe that in today's world numerous skills and capabilities come by way of learning external of traditional education, or external of schooling altogether.

An alternative framework of the demand for education, commonly covered to as screening, is based on the economic concepts of signalling. The central idea is that the successful completion of education is aof ability.

Although Marx and Engels did non write widely approximately the social functions of education, their concepts and methods are theorized and criticized by the influence of Marx as education being used in reproduction of capitalist societies. Marx and Engels approached scholarship as "revolutionary scholarship" where education should serve as a propaganda for the struggle of the workings class. The classical Marxian paradigm sees education as serving the interest of capital and is seeking choice modes of education that would set up students and citizens for more progressive socialist mode of social organizations. Marx and Engels understood education and free time as necessary to developing free individuals and devloping many-sided human beings, thus for them education should become a more essential part of the life of people unlike capitalist society which is organized mainly around work and the production of commodities.