Economics education demand

The dominant model of the demand for education is based on human capital theory. The central idea is that undertaking education is investment in the acquisition of skills and knowledge which will increase earnings, or provide longterm benefits such as an appreciation of literature (sometimes referred to as cultural capital). Studies from 1958 attempted to calculate the returns from additional schooling. Later results attempted to allow for different returns across persons or by level of education.

Statistics have shown that countries with high enrollment/graduation rates have grown faster than countries without. The United States has been the world leader in educational advances, beginning with the high school movement (1910-1950).

An alternative model of the demand for education, commonly referred to as screening is based on the economic theory of signalling. The central idea is that the successful completion of education is a signal of ability