Do rates of return matter for public and private educational decisions?

Autor/in	Soumelis, Costas
Titel	Do rates of return matter for public and private educational decisions?
Quelle	In: Higher education, (1981) 3, S.353-361Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0018-1560
DOI	10.1007/BF00139566
Schlagwörter	Public Authority; Equal Opportunity; Decision Function; Educational Qualification; Educational Objective
Abstract	Abstract This article reviews some studies of individual demand for higher education undertaken during the 1970s. It argues that although lifetime earnings are positively related to educational qualifications, rates of return to education do not seem to matter much for either public or private educational decisions. Public educational decisions seem to be affected more by such factors as the inertia of the system, expected externalities of socio-political importance, which are not measurable and, therefore, are excluded from the rate of return calculations and some educational objectives, such as meeting social demand and for ensuring equal opportunities to all individuals, which public authorities adopt at any time period. On the other hand, pupils' educational plans for post-secondary education were found to be greatly influenced by their scholastic achievement, sex and socio-economic status. It was also found that the economic factor which clearly enters into their decisions function, is initial salary differentials. However, a high proportion of pupils do not possess this information. It is also argued that individual demand for post-secondary education could be estimated with a high degree of approximation on the basis of pupils' scholastic achievement at secondary school, sex and socio-economic status. The pupil's ability to finance his further studies, particularly the poor student and in the absence of grant or loan systems is of great importance.
Erfasst von	OLC
Update	2023/2/05