In a recent paper, Garcia-Mainar and Montuenga-Gomez [Garcia-Mainar, I. & Montuenga-Gomez, V. M. (2005). Education returns of wage earners and self-employed workers: Portugal vs. Spain. "Economics of Education Review, 24"(2), 161-170] apply the generalized IV model of Hausman and Taylor to estimate education returns of wage earners and the…

In their reply to our comment, Garcia-Mainar and Montuenga-Gomez [Garcia-Mainar, I., & Montuenga-Gomez, V. M. (2009). A response to the comment on education returns of wage earners and self-employed workers. "Economics of Education Review"] did not address our fundamental criticism that they have not provided the information necessary to replicate…

This is a response to [Jordahl, H., Poutvaara, P., & Tuomala, J. (2009). Comment on education returns of wage earners and self-employed workers. "Economics of Education Review" 28]. We acknowledge that econometrics have improved since the time our original paper was written, so that the choice of accurate instruments is now more deeply founded.…

The size of schools and districts in which they are located has become a salient policy issue in recent years. While consolidation of school districts and expanding high school size were in vogue from the 1960s until recently, funding agencies are now sponsoring projects to reduce school size under the assumption that smaller schools will lead to…

This paper measures the effects of living near a ''high quality'' college on the college attended. If local colleges provide information about postsecondary education or role models for youth, they may generate ''spillover'' effects that increase the quality of the college attended, even for individuals who do not attend college locally. Using…

Education is linked with economic productivity and growth in personal income. But what is it about education which creates this linkage? Have nations with high rates of enrollment achieved the maximum educational productivity? This note will argue that the impact of education is derived primarily from its quality, but that there are multiple…

Provides a "deliberately provocative bird's-eye view" of new directions in thinking among economists concerned with education. Looks at the socialization function of schooling, the use of educational attainment as a hiring criterion, the importance of the "incomplete" employment contract, and labor market segmentation theory. Considers…

Focuses on three sets of generalized interrelationships among population growth, technological change, and education: human resources and technological change; parental education, child services, and demographic transition; and relationships affecting household health and contraception. Outlines current demographic trends and predicts effects of…

The framework of an aggregate production function shows that growth of human capital is both a condition and a consequence of economic growth. The concurrent growth and diffusion of human capital, involving production of new knowledge, appears necessary to ensure sustained economic development worldwide. (TE)

The view of the British government toward higher education has been subject to changing perspectives with the role of economic analysis becoming more significant. Government policy implications for higher education resource allocation can be rationalized in terms of the human capital approach and the problems of managing a bureau. (Author/MLF)

Discusses the significance of the shift in federal educational policies marked by the adoption of the block grant approach to federal aid in Chapter 2 of the Education Consolidation and Improvement Act. Reviews several general findings of case studies of the first year of Chapter 2 grant implementation. (PGD)

Defines the block grant concept and outlines the consequences of the financial freedom offered by block grants from both microeconomic and macroeconomic perspectives. Considers effects on institutional autonomy and economic efficiency. Recommends combining marginal cost pricing with formula-matching block grants to support decentralized education.…

Reviews national interests in education and considers the effectiveness of different forms of federal grants in addressing those interests. Concludes that providing equalization aid is the only appropriate purpose for block grants since such grants do not encourage state and local agencies to concern themselves with national priorities. (PGD)

Examines recent major proposals for improvements in elementary and secondary education from an economic perspective and assesses their likely effects. Suggests that efficient, effective, and equitable use of resources has not been fully considered in the preparation of the proposals. (PGD)

Summarizes the research findings in this special issue, outlines knowledge gaps, and suggests implications for the U.S. policy on student aid. Examines financial aid's impact on college enrollments, tuition, and expenditures relative to institutional behavior models. Discusses aid to targeted subgroups, the definition of financial independence,…