Key messages from the guide:
education economics starts from the basis that there are returns to education that increase the wealth and well- being of the educated.
- economists view education as a merit good, meaning returns to education benefit others beyond the person being educated.
government and public sector intervention in education can be justified, as well as by market failures in capital markets and in the provision of information, which mean the market alone would provide insufficient education.
- there is a view of education as a ‘right’, which means it should be provided regardless of cost-benefits ratios.
Holden, J.; Aslam, M. Topic Guide: Education economics. A guide to through the subject. EPS PEAKS, UK (2014) 75 pp.