The measure of economic benefits that individuals and society receive from investing in education.
Human Capital Theory: This theory provides an understanding of knowledge and skills as investment which enhances productivity over time. It also suggests that investment in education produces a higher level of human capital which leads to higher wages and income.
Education Production Function: The production function assesses how internal and external factors contribute to the educational achievement of students. The inputs are the resources and teacher's attributes, and the output is the knowledge and skills gained by students.
Signaling Theory: Signaling theory examines how and why individuals invest in education when there may not be a direct relationship between the knowledge acquired and job performance. It deals with the role of education in certifying ability and quality of individuals to employers.
Early Childhood Education: Understanding how early childhood development affects long-term educational outcomes and individual earnings is essential in education economics.
Cost-Benefit Analysis: This method compares the benefits of invested resources in education to the costs involved in getting that education.
Education policy and Funding: This topic elucidates the policies and funding mechanisms that governments use to finance education, including tax-funded subsidies for education, government subsidised loans, and grants.
Labour Economics: The study of the labour market, including compensation structure, wage rates, job opportunities, and employment trends that directly impact returns to education.
Intergenerational Effects of Education: It is said that a person's education, particularly of parents, affects the educational outcomes of their children. Therefore, understanding intergenerational effects on education is vital.
Technology and Education: Technology with time is changing various aspects of our life, so it's worth studying the impact of technology on learning outcomes, human capital formation, and educational institutions.
School Choice and Competition: This topic examines the effects of choice and competition on student performance and the mechanisms by which school choice improves educational outcomes.
Efficiency and Equity of Education Systems: It looks at the way that educational systems are designed, and assesses how efficiently and equitably they deliver growth and development to individuals and society.
Education and Economic Growth: This topic addresses the relationship between education and economic growth, how investment in education leads to human development, and how that in turn affects national economic productivity.
Private Returns: These are benefits that a person receives directly from investing in education, such as increased earnings and job opportunities.
Social Returns: These benefits accrue to society as a whole, such as reduced inequality, improved health outcomes, and higher productivity.
External Returns: These returns are not captured by the individual, and include benefits to other individuals or firms, such as spillovers of knowledge and information.
Human Capital Returns: This refers to the investment made in human capital through education, training, and experience that pays off in the form of higher wages and increases in productivity.
Non-Monetary Returns: These are benefits that are not financial in nature, such as greater job satisfaction, improved social status, and enhanced health outcomes.
Horizontal Returns: These refer to the benefits gained from obtaining a credential or degree that are specific to a particular industry or occupation.
Vertical Returns: These are benefits that are gained from obtaining a higher level of education, such as a bachelor’s degree or a master’s degree.
Dynamic Returns: These are returns that accrue over time, such as the effect of education on career advancement and long-term career earnings.
Gender Returns: These are returns that accrue to women relative to men as a result of their investment in education, such as higher earnings and greater labor force participation.
Ethnic Returns: These are returns that accrue to members of ethnic and racial minorities as a result of their investment in education, such as reduced discrimination and increased opportunities for social and economic mobility.