ERIC Number: ED157900
Record Type: RIE
Publication Date: 1975-May
Reference Count: 0
The Economic Benefits of Schooling and Reading Competence.
Young, Kan-Hua; Jamison, Dean T.
To calculate the economic benefits of schooling and compensatory education, a statistical model estimated the effects of schooling and literacy on earnings and employment. The literacy measure was obtained for a probable sample of the U.S. population in 1972, from the National Reading Survey. The measure was administered with a background demographic questionnaire to 2,308 individuals, age 25 to 60, who reported some earnings in 1972. Variables examined were: 1972 earnings, wage rate, work hours, years of schooling, reading score, potential work experience, other income, father's education, mother's education, age, race, sex, and employment status. Three models were used: simple earnings function, labor market, and educational achievement. Methodologically, both recursive and simultaneous models were examined in both the labor market and the educational achievement analysis. In terms of increased annual earnings, estimated benefits of a hypothetical compulsory education for a representative individual are the highest for white males ($3,810) and the lowest for white females ($1,370). Corresponding benefits for black males and females are $2,580 and $1,940. Estimated benefits of a low target compensatory reading program for a representative individual are $323 and $273 for white males and black males, only $12 for white females, and negative for black females. (CP)
Descriptors: Academic Achievement, Adult Literacy, Adults, Compensatory Education, Educational Benefits, Educational Economics, Educational Experience, Employment, Income, Individual Characteristics, Labor Market, Mathematical Models, National Surveys, Predictor Variables, Racial Differences, Reading Ability, Reading Programs, Sex Differences, Statistical Data, Statistical Studies
Publication Type: Reports - Research
Education Level: N/A
Sponsor: National Inst. of Education (DHEW), Washington, DC.
Authoring Institution: Educational Testing Service, Princeton, NJ.
Identifiers: National Reading Survey
Note: Paper presented at the Economics of Education Seminar (London, England, January, l974) and the Colloquium on Mathematical Methods in the Social Sciences (Bucharest, Rumania, May, 1974)