ERIC Number: ED113783
Record Type: RIE
Publication Date: 1974-Apr
Reference Count: 0
The Investment Approach to Educational Planning. The Fundamentals of Educational Planning: Lecture-Discussion Series No. 32.
If education is a form of investment, how much does it contribute to economic growth compared with other forms of investment? The first approach to answering this question was the correlation approach. But although simple correlation studies show a relationship between education and economic progress, they do not prove cause and effect. The residual approach tried unsuccessfully to show how much increase in national income was due to education. A third approach viewed education as an investment in human capital and tried to measure the economic rate of return on this investment. Recently research has shifted toward the search for strategies of educational planning and resource allocation. One such strategy is the social demand approach, which regards educational planning as the process of forecasting the demand for education. Another strategy is manpower forecasting, which tries to mold the educational system to meet the particular manpower needs of the economy. A third strategy uses cost-benefit analysis to decide how best to allocate resources among different types and levels of education. (Author/JG)
Descriptors: Cost Effectiveness, Economic Development, Educational Demand, Educational Economics, Educational Planning, Human Capital, Investment, Labor Force Development, Labor Needs, Resource Allocation
IIEP Publications, 7-9 rue Eugene-Delacroix, 75016 Paris, France ($0.25, distribution charges)
Publication Type: Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: United Nations Educational, Scientific, and Cultural Organization, Paris (France). International Inst. for Educational Planning.