The Economics of Education

Edited By

  • Martin Carnoy

This new Encyclopedia draws upon articles in The International Encyclopedia of Education, 2nd Edition (described by Choice as being "a premier resource when judged on virtually every criteria applied to a reference work") with revisions as well as new articles. It provides an understanding of where the economics of education has been, where it is heading, and where it needs to go in the future to provide further insights into the human role in production and the production of human skills valued in the labour market.

The economics of education has both been expanded into new areas of research and has deepened and changed its analysis of traditional areas, such as educational finance, the production of knowledge, and the relation between education and economic growth. In the past decade theories have been modified and new concepts have appeared. The rapid change within the field convinced the publisher and the Editors-in-Chief of the need for a completely new edition of this valuable compilation.

The volume is divided into eight sections: The economics of education, then and now, education and labour markets, the benefits of education, education economic growth and technological change, education, income distribution and discrimination, the production of education, evaluating educational investment, and financing education. Each of the sections has its own introduction.

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The Encyclopedia is recommended not only to specialists in education finance, educational administration, economic departments, government agencies and research corporations involved in educational, human resource and economic development issues, but to all educational researchers and anyone with a general interest in education.


Book information

  • Published: December 1995
  • Imprint: PERGAMON
  • ISBN: 978-0-08-042303-6


...The encyclopedia covers vast area and features the writing of a wide range of scholars within the field. The fact that the volume is thematically organized under eight sections, each of which is given coherence by an introduction by the editor, allows ideas to be introduced and key issues to be identified for the reader. This is useful in a reference text, and here especially since it is in addition to a comprehensive index. Each section deals with a specific aspect of the economics of education. The coverage is comprehensive in scope and represents a variety of ideological perspectives. There is also a good balance between general theoretical analyses and those grounded in specific societies as well as between perspectives of the developed and developing world...the encyclopedia's value lies in the contribution that it can make to current debates in education. As such, it would be of value to sociologists, political economists, educational planners, practitioners and students within the field of education and development and comparative education.
British Journal of Educational Studies

...While the first edition concentrated on somewhat critical and dominant aspects of economics of education, the second edition gave much weighage to not so important issues that dominate the thinking and research in the area of economics of education, including, for example, screening theory, and hypotheses on over-education. In a sense, the coverage has been much wider in the second edition than in the first and reflects the complex growth of economics of education. In a way, the two editions partly complement each other, though partly substitute each other. Together, they form the richest source of knowledge in economics of education...Beyond doubt, it is a rich treasure for the students of economics of education.
Jandhyala B.G. Tilak, Journal of Educational Planning Administration

Table of Contents

The Economics of Education, Then and Now. Economics of education, then and now (M. Carnoy). Education and Labor Markets. Introduction (M. Carnoy). Work and education (H.M. Levin). Education and the labor market (K. Hinchliffe). Human capital concepts (M. Woodhall). Internal labor markets and education (P.B. Doeringer). Screening models and education (W. Groot, J. Hartog). Education and segmented labor markets (G. DeFreitas). The employment contract and education (M. Blaug). Agency and efficiency wage theory (S. Bowles, H. Gintis). Job information and education (S. Rosen). Demand and supply elasticities for educated labor (R.B. Freeman). On-the-job training (M.J. Bowman). Vintage effects and education (S. Rosen). Internal migration and education (R.H. Sabot, P.L. Wong). Economics of the brain drain (H.G. Grubel). Public sector employment and education (K. Hinchliffe). Education and labor markets in developing nations (I. Llamas). Education and female labor force participation in industrializing countries (G.V. De Miranda). Educational expansion and labor markets (G.S. Fields). Education and informal labor markets (M. Tueros). The Benefits of Education. Introduction (M. Carnoy). Benefits of education (L.C. Solmon, C.L. Fagnano). Education and productivity (M. Carnoy). Education and agricultural productivity (P.R. Moock, H. Addou). Vocational education and productivity (Weifang Min). Education and earnings (P. Cipollone). Education, occupation, and earnings (T. Tachibanaki). Benefits of improving the quality of education (M. Carnoy). External benefits of education (B.L. Wolfe). Education and fertility (L. Gibney). Consumption benefits of education (W.W. McMahon). Returns to vocational education in developing nations (Yue-Ping Chung). Economics of apprenticeship (S.F. Hamilton, R. Glover). Economics of nonformal training (A.-M. Arriagada, P.L. Wong). Education, Economic Growth, and Technological Change. Introduction (M. Carnoy). Education and economic growth (N.L. Hicks). Endogenous learning and economic growth (D.J. Harris). Education and technological change (M. Carnoy). Education and the new international division of labor (M. Carnoy). Technological change and the demand for educated labor (R.W. Rumberger). Technological change and deskilling (K.I. Spenner). Education, Income Distribution, and Discrimination. Introduction (M. Carnoy). Income distribution and education (J. Velloso). Race earnings differentials (M. Carnoy). Gender differences in earnings (M.A. Ferber). Gender and occupational segregation (M.H. Strober). Economics of gender and education choices (E.M. King). Immigrants' economic performance and education (B.R. Chiswick). Kinship and investment in education (J.R. Behrman, P. Taubman). Family status and economic status (P. Taubman). The Production of Education. Introduction (M. Carnoy). Education production functions (E.A. Hanushek). Process of schooling (H.M. Levin). Political economy of educational production (M. Carnoy). Joint production of education (M. Carnoy). Microeconomics of school production (D.H. Monk). School dropouts (D.M. Kelly). Economics of preschool education (W.S. Barnett). Supply of teachers (R.J. Murnane). Economics of teacher education (A. Wagner). Economics of teacher unionization (R.W. Eberts, J.A. Stone). Teacher participation in school decision making (C. Brown). Economics of school enterprise (D. Stern). Economics of childcare (M.H. Strober). School choice: market mechanisms (H.M. Levin). Economics of educational time and learning (B. Millot). Educational technology: cost effectiveness analysis (S.J. Klees). Evaluating Educational Investment. Introduction (M. Carnoy). Cost-benefit analysis (H.M. Levin). Rates of return to education (M. Carnoy). Manpower analysis (K. Hinchliffe). Cost-effectiveness analysis (H.M. Levin). Cost analysis in education (M.C. Tsang). Private and public costs of schooling in developing nations (M.C. Tsang). Financing Education. Introduction (M. Carnoy). Educational financing (C.S. Benson). School finance (H.M. Levin). Student loans (M. Woodhall). Student fees (M. Woodhall). Community financing of education (M. Bray). International financing of education (D.M. Windham). International aspects of financing education (E. Jimenez). International educational expenditures (J.-C. Eicher). Public-private division of responsibility for education (E. James).