3.2 The Economical Dimension of Education

The economics of education is the study of economic issues relating to education, including the demand for education and the financing and provision of education. From early works on the relationship between schooling and labor market outcomes for individuals, the field of the economics of education has grown rapidly to cover virtually all areas with linkages to education. It has become a very vibrant area for research by young researchers. Economics of education analyze both what determines or creates education and what impact education has on individuals and the societies and economies in which they live. Determining outcomes to educational investment and the creation of human capital is the primary mission of the economics of education is to identify opportunities for improved efficiency, equity, and quality of education and promote effective education reform processes to help improve knowledge of what drives education outcomes and results; to better understanding how to strengthen the links of education systems with the labor market.