Economics of Education

  1. The Demand for Education
    1. The Individual's Schooling Decision
      1. The Human Capital Investment Model
        1. Present Value of Education
          1. Discounting Future Earnings
            1. Net Present Value Calculation
            2. Lifetime Earnings Profiles
              1. Age-Earnings Profiles by Education
                1. Career Progression Patterns
                2. Optimal Stopping Rules
                  1. Marginal Benefit-Cost Analysis
                    1. Dynamic Programming Approaches
                  2. Costs of Schooling
                    1. Direct Costs
                      1. Tuition and Fees
                        1. Public Institution Costs
                          1. Private Institution Costs
                            1. Graduate School Costs
                            2. Books and Supplies
                              1. Required Materials
                                1. Technology Requirements
                                2. Transportation and Living Expenses
                                  1. Housing Costs
                                    1. Commuting Costs
                                      1. Meal Plans and Food
                                    2. Indirect Costs
                                      1. Forgone Earnings
                                        1. Full-Time Work Alternatives
                                          1. Part-Time Work Limitations
                                          2. Opportunity Costs of Time
                                            1. Alternative Time Uses
                                              1. Leisure Value
                                          3. Benefits of Schooling
                                            1. Monetary Returns
                                              1. Wage Differentials by Education Level
                                                1. High School Premium
                                                  1. College Premium
                                                    1. Graduate School Premium
                                                    2. Employment Probabilities
                                                      1. Job Security
                                                        1. Unemployment Risk Reduction
                                                        2. Career Advancement Opportunities
                                                          1. Promotion Prospects
                                                            1. Leadership Positions
                                                          2. Non-Monetary Returns
                                                            1. Health Outcomes
                                                              1. Physical Health Benefits
                                                                1. Mental Health Benefits
                                                                  1. Health Behavior Changes
                                                                  2. Social Status
                                                                    1. Prestige and Recognition
                                                                      1. Social Mobility
                                                                      2. Job Satisfaction
                                                                        1. Work Autonomy
                                                                          1. Job Variety and Interest
                                                                          2. Consumption Benefits
                                                                            1. Cultural Appreciation
                                                                              1. Informed Decision-Making
                                                                          3. The Role of Discount Rates and Time Preference
                                                                            1. Intertemporal Choice in Education
                                                                              1. Present vs. Future Consumption
                                                                                1. Investment Time Horizons
                                                                                2. Heterogeneity in Discount Rates
                                                                                  1. Individual Differences
                                                                                    1. Socioeconomic Variations
                                                                                      1. Age and Life Stage Effects
                                                                                      2. Credit Market Imperfections
                                                                                        1. Borrowing Constraints
                                                                                          1. Interest Rate Variations
                                                                                      3. Determinants of Educational Demand and Attainment
                                                                                        1. Family Background
                                                                                          1. Parental Income and Wealth
                                                                                            1. Financial Resources for Education
                                                                                              1. Intergenerational Wealth Transfer
                                                                                              2. Parental Education Levels
                                                                                                1. Educational Role Models
                                                                                                  1. Academic Support Capacity
                                                                                                  2. Family Structure
                                                                                                    1. Two-Parent vs. Single-Parent Households
                                                                                                      1. Sibling Effects
                                                                                                        1. Extended Family Influence
                                                                                                        2. Parental Expectations and Involvement
                                                                                                          1. Academic Expectations
                                                                                                            1. School Engagement
                                                                                                              1. Educational Investment Decisions
                                                                                                            2. Individual Ability
                                                                                                              1. Cognitive Skills
                                                                                                                1. IQ and Academic Aptitude
                                                                                                                  1. Standardized Test Performance
                                                                                                                    1. Learning Capacity
                                                                                                                    2. Subject-Specific Abilities
                                                                                                                      1. Mathematical Ability
                                                                                                                        1. Verbal Ability
                                                                                                                          1. Spatial Reasoning
                                                                                                                        2. Non-Cognitive Skills
                                                                                                                          1. Motivation and Perseverance
                                                                                                                            1. Grit and Persistence
                                                                                                                              1. Goal Orientation
                                                                                                                              2. Social and Emotional Skills
                                                                                                                                1. Interpersonal Skills
                                                                                                                                  1. Emotional Regulation
                                                                                                                                    1. Leadership Abilities
                                                                                                                                    2. Self-Control and Discipline
                                                                                                                                      1. Time Management
                                                                                                                                        1. Delayed Gratification
                                                                                                                                    3. Credit and Liquidity Constraints
                                                                                                                                      1. Access to Student Loans
                                                                                                                                        1. Federal Loan Programs
                                                                                                                                          1. Private Loan Markets
                                                                                                                                            1. Loan Terms and Conditions
                                                                                                                                            2. Impact on Low-Income Students
                                                                                                                                              1. Enrollment Effects
                                                                                                                                                1. Institution Choice Effects
                                                                                                                                                  1. Completion Effects
                                                                                                                                                  2. Family Financial Planning
                                                                                                                                                    1. College Savings Plans
                                                                                                                                                      1. Financial Aid Awareness
                                                                                                                                                    2. Information Asymmetries
                                                                                                                                                      1. Awareness of Educational Opportunities
                                                                                                                                                        1. Knowledge of Programs and Institutions
                                                                                                                                                          1. Understanding of Admission Requirements
                                                                                                                                                          2. Misperceptions of Costs and Benefits
                                                                                                                                                            1. Overestimation of Costs
                                                                                                                                                              1. Underestimation of Benefits
                                                                                                                                                                1. Financial Aid Misconceptions
                                                                                                                                                                2. Information Sources and Quality
                                                                                                                                                                  1. School Counseling Services
                                                                                                                                                                    1. Family and Peer Information
                                                                                                                                                                      1. Media and Internet Resources
                                                                                                                                                                    2. Social and Peer Influences
                                                                                                                                                                      1. Peer Group Effects
                                                                                                                                                                        1. Academic Peer Pressure
                                                                                                                                                                          1. Social Norms in Peer Groups
                                                                                                                                                                          2. Neighborhood and Community Context
                                                                                                                                                                            1. Community Educational Values
                                                                                                                                                                              1. Local Economic Opportunities
                                                                                                                                                                                1. Role Model Availability
                                                                                                                                                                                2. School Environment
                                                                                                                                                                                  1. School Culture and Climate
                                                                                                                                                                                    1. Teacher Expectations
                                                                                                                                                                                      1. Academic Competition
                                                                                                                                                                                    2. Cultural and Institutional Factors
                                                                                                                                                                                      1. Social Norms Regarding Education
                                                                                                                                                                                        1. Cultural Values of Education
                                                                                                                                                                                          1. Gender Role Expectations
                                                                                                                                                                                            1. Ethnic and Religious Influences
                                                                                                                                                                                            2. Institutional Barriers to Access
                                                                                                                                                                                              1. Admission Requirements
                                                                                                                                                                                                1. Geographic Accessibility
                                                                                                                                                                                                  1. Language Barriers
                                                                                                                                                                                                  2. Policy Environment
                                                                                                                                                                                                    1. Compulsory Schooling Laws
                                                                                                                                                                                                      1. Financial Aid Policies
                                                                                                                                                                                                        1. Affirmative Action Policies

                                                                                                                                                                                                  Previous

                                                                                                                                                                                                  1. Foundational Concepts in the Economics of Education

                                                                                                                                                                                                  Go to top

                                                                                                                                                                                                  Next

                                                                                                                                                                                                  3. The Returns to Education