Deck 10: Economics of Education

Question 1

For a community, what are the costs and benefits of schools closing their traditional methods of education in favor of alternative methods? How do the characteristics of the pandemic impact the educational process?

Answer 1

For a community, the benefit of schools closing their traditional methods of education in favor of alternative methods during a pandemic is that the number of transmissions between students is reduced. This reduction in transmissions should lead to less cases in the community allowing the community benefits from lower case numbers such as easier access to healthcare systems, less restrictions, etc. The costs of schools closing their traditional methods of education in favor of alternative methods during a pandemic is the disruption to work, developmental losses, and less access to publicly-supported assistance programs. Closing traditional methods of education means working parents lose childcare and have to find alternative methods of childcare while they work. Students have development losses due to the change in method of education and the numerous changes that affect the effectiveness of alternative methods of education. Students also lose access to publicly-supported assistance programs such as free meals for low-income students and after school programs that provide tutoring opportunities. Based on the characteristics of the pandemic, the educational process is impacted. Depending on the length, the degree of infection, the policies and responses, and the recovery and containment of the pandemic, the type and length of school closure and the educational process is impacted.

Question 2

What are the factors that influence a person's decision to invest in human capital? How does a pandemic alter this calculation?

Answer 2

The ability to learn is the technological efficiency of education, a function of both individual effort on the demand side and the provision of educational resources on the supply side. In the case of a person's decision to invest in human capital, the assumption made is that the person investing, or the investor, is doing so as a function of a firm, such that she is considering a cost/benefit analysis surrounding her decision to invest. To this end, the investor must contemplate the degree to which her potential or existing employee is going to benefit from, and utilize, the training or education she is providing. In so doing, it is likely that she will consider the employee's educational background, as well as his employment background, if any of note exists. Additionally, the more that is invested into human capital, the more productive and contributory the worker will be, and will, in turn, be more beneficial for the economy.

Question 3

What are the external benefits of education? How should government account for external benefits? Does a pandemic alter this framework?

Answer 3

From a social perspective, educated individuals are more likely to be productive citizens. An additional benefit is the integration of students from different socio-economic backgrounds, ethnic groups, races, and religions, which contributes to social stability and economic vitality. From an economics perspective, these external benefits, benefits accruing to people other than the consumers or producers, justify a substantial subsidy to public education, but much more during a pandemic.

Question 4

Explain the demand-side and supply-side challenges of online education. How do these factors differ with respect to urban and rural areas, public and private education, and pandemic intervals such as shutdown and recovery?

Question 5

During a pandemic, what happens to the supply of and demand for in-person, full-time education? What happens to the supply of and demand for online education?

Question 6

How does the cost-effective provision of education during a pandemic differ according to primary, secondary, and higher education?

Question 7

What are the costs and benefits of online and hybrid models of education during a pandemic?

Question 8

What are safe centers for online learning? Are these cost-effective and educationally appropriate options for students of all ages? What are the benefits and costs?

Question 9

During a pandemic, why does incentive exist for innovation and technological advance in education? During the coronavirus pandemic, what were some examples of innovation and technological advance in education? What are the costs and benefits of these methods?

Question 10

Consider two model frameworks: a publicly-funded model with free tuition and a tuition-based model with student loans. In a pandemic, which model is more cost-effective?