A new approach is suggested that depends on and measures how spending on higher and basic education is really an investment in the future, not consumption spending. This is a vital distinction because investment in human capital contributes heavily to growth and development, but also to higher state tax revenue and lower Medicaid, child care,…

A college education has long been acknowledged as essential for both personal success and economic growth. But the measurable value of its nonmonetary benefits has until now been poorly understood. Walter W. McMahon, a leading education economist, carefully describes these benefits and suggests that higher education accrues significant social and…

This paper estimates the effects of human capital skills largely created through education on life's chances over the life cycle. Qualifications as a measure of these skills affect earnings, and schooling affects private and social non-market benefits beyond earnings. Private non-market benefits include better own-health, child health, spousal…

Presents new estimates of social rates of return to high school and four-year college education (1967-88), based on microeconomic U.S. census data. Estimates are compared with real rates of return to investment in plant and equipment and in housing since 1947. Rates of return for investment in high school and plant and equipment are similar. (25…

This paper considers the relation of education and of scientific and technical knowledge developed through research and development to labor productivity growth within the medium term. The empirical significance of sources of productivity growth is tested using data for the United States and 14 other nations. (Author/MLF)

Applies production functions with education externalities to East Asia, testing for net effects of policy differences concerning enrollments vs. expenditures and for feedbacks through education's effects on rates of physical and capital investment. Since most countries had universal primary education early, the rate of secondary-education…

Discusses the overall efficiency of investment in primary and secondary education and technology transfer via investment both in physical capital and higher education in 30 of the poorest African countries. A high (21.2 percent) rate of return to investment in primary and secondary education was found. Includes six tables and 20 references. (MLH)

Three strategic effects on the rates of return to vocational and technical education (VOTEC) are considered: (1) the availability of complementary inputs such as general education; (2) the capacity of VOTEC to teach continuing adaptation to technical change; and (3) economies of scale that can be realized. (26 references) (MLF)

Identifies market and nonmarket returns to education over graduates' life cycle, as well as social benefit externalities. Considers most recent developments in measuring and evaluating these returns, relating them to costs. The capacity to finance lifelong learning depends on identification and measurement capacity and political processes. (149…