The real puzzle is how large measured marginal returns to education are consistent with the continuing observed failures of the American educational system. Why does the low-hanging fruit persist or is it low-hanging at all? The traditional liberal view is that further educational subsidies are needed, but a possible alternative is that some people simply do not wish to step across to the other side of the divide to a “better life,” at least as defined by middle class values and income statistics. Or is there some other hypothesis? Whichever way you cut it, a big improvement in this area does not seem about to happen and arguably we are moving in the opposite direction. Whatever gains are there “in the data,” we don’t seem able or willing to capture them.I also found the graphics in this Economix blog post to be especially interesting.
Tuesday, June 28, 2011
Returns to Education in the Econo-blogosphere
Recently, there has been an explosion of debate about the returns to education among economists in the economics blogosphere. For an interesting point of entry to this debate, check out Tyler Cowen: