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A review of the social and non-market returns to education

There are three distinct ways of defining returns to education. These are the private return, the social return and the labour productivity return. Here, we are most interested in the direct/private and indirect/social non-monetary aspects of learning, which are called ‘non-monetary returns’. Non-monetary returns, along with economic returns (forming human capital) are one of the important contributors to [Gross Domestic Product] GDP both directly and indirectly. Non-market returns are the combination of Private non-market effects and Community non-market effects. Measurement and methodology remain fundamental issues of concern to researchers. In the US the agreed approach is to measure education in terms of years of schooling while in the UK measurement is based upon qualifications gained. Education relates to wider economic and social effects and human welfare depends partly on earnings but also on moderation of crime costs, slower population growth, less poverty, a cleaner environment and other non-monetary outcomes that all trace back to education in various ways. Positive relationships between education and health, the health of family members, the schooling of one’s children, life choices made, fertility choices and infant mortality exist. Education also has a positive effect on the environment and has a strong correlation in crime reduction.

There are three distinct ways of defining returns to education. These are the private return, the social return and the ...  Show Full Abstract  

Authors: Owens, Julie
Corporate authors: Education and Learning Wales (ELWa)
Date: 2004
Resource type: Report
Subjects: Outcomes; Finance; Industry;

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