ERIC Number: ED229288
Record Type: Non-Journal
Publication Date: 1983-Jan
Reference Count: N/A
Education and Economic Well-Being: The Role of Non-Market Effects.
Haveman, Robert; Wolfe, Barbara
The aggregate economic value of additional education or schooling is an important research question with major policy impact. Labor market based estimates are only a portion of the total effects of education which are valued by citizens. The remaining portion consists of some additional marketed effects of education and a large number of valuable effects such as working conditions, leisure, and health which are not reflected in market prices. The first part of the paper discusses the economic character of 20 marketed and non-marketed effects of education and summarizes what is known from existing literature regarding the magnitude of impact and economic value of each effect. The second section outlines a method for measuring the marginal value of education, covering both market and non-market impacts. Illustrative calculations are provided in the third and final section. It is concluded that the standard rate of return estimates of the benefit of incremental schooling may capture only about three-fifths of the full (market plus non-marketed) value of education. (Author/RM)
Publication Type: Reports - Research; Information Analyses; Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: Wisconsin Univ., Madison. Inst. for Research on Poverty.