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Private and Public Investments in Children: Creating the Human Capital to Meet US Economic Needs

In: Family Economics and Public Policy, 1800s–Present

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  • Megan McDonald Way

    (Babson College)

Abstract

Educational investments have been key to US economic development and growth. This chapter looks at the economy over time in relation to the educational system and identifies the economic factors behind families’ and governments’ allocation of resources to human capital investments. Then it describes the evolution of the US primary, secondary, and higher education systems over the last two centuries, and the effect of legalized school segregation on education for African Americans. The economic effects on families of past policies including local school funding, de jure segregation, and the G.I. Bill are explained. Finally, the chapter details how universal preschool, school vouchers, and free community college could change the economics of education for families.

Suggested Citation

  • Megan McDonald Way, 2018. "Private and Public Investments in Children: Creating the Human Capital to Meet US Economic Needs," Palgrave Studies in American Economic History, in: Family Economics and Public Policy, 1800s–Present, chapter 0, pages 89-131, Palgrave Macmillan.
    • Handle: RePEc:pal:psichp:978-1-137-43963-5_4
    DOI: 10.1057/978-1-137-43963-5_4
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