Advanced Search
MyIDEAS: Login

The system-wide impacts of the external benefits to higher education on the Scottish economy: An exploratory “micro-to-macro" approach

Contents:

Author Info

  • Kristinn Hermannsson

    ()
    (Fraser of Allander Institute, Department of Economics, University of Strathclyde)

  • Katerina Lisenkova

    ()
    (Fraser of Allander Institute, Department of Economics, University of Strathclyde)

  • Patrizio Lecca

    ()
    (Fraser of Allander Institute, Department of Economics, University of Strathclyde)

  • Peter McGregor

    ()
    (Fraser of Allander Institute, Department of Economics, University of Strathclyde)

  • Kim Swales

    ()
    (Fraser of Allander Institute, Department of Economics, University of Strathclyde)

Abstract

The private market benefits of education, i.e. the wage premia of graduates, are widely studied at the micro level, although the magnitude of their macroeconomic impact is disputed. However, there are additional benefits of education, which are less well understood but could potentially drive significant macroeconomic impacts. Following the taxonomy of McMahon (2009) we identify four different types of benefits of education. These are: private market benefits (wage premia); private non market benefits (own health, happiness, etc.); external market benefits (productivity spillovers; and external non-market benefits (crime rates, civic society, democratisation, etc.). Drawing on available microeconometric evidence we use a micro-to-macro simulation approach (Hermannsson et al, 2010) to estimate the macroeconomic impacts of external benefits of higher education. We explore four cases: technology spillovers from HEIs; productivity spillovers from more skilled workers in the labour market; reduction in property crime; and the potential overall impact of external and private non-market benefits. Our results suggest that the external economic benefits of higher education could potentially be very large. However, given the dearth of microeconomic evidence this result should be seen as tentative. Our aim is to illustrate the links from education to the wider economy in principle and encourage further research in the field.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.strath.ac.uk/media/departments/economics/researchdiscussionpapers/2012/12-04-Final.pdf
Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Kirsty Hall)
Download Restriction: no

Bibliographic Info

Paper provided by University of Strathclyde Business School, Department of Economics in its series Working Papers with number 1204.

as in new window
Length: 47 pages
Date of creation: Jun 2012
Date of revision:
Publication status: Published
Handle: RePEc:str:wpaper:1204

Contact details of provider:
Postal: Sir William Duncan Building, 130 Rottenrow, Glasgow G4 0GE
Phone: +44 (0)141 548 3842
Fax: +44 (0)141 548 4445
Email:
Web page: http://www.strath.ac.uk/economics/
More information through EDIRC

Related research

Keywords: Supply side impact; higher education institutions; computable general equilibrium model; Social and external benefits; Crime;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Heckman, James J., 2006. "Contributions of Zvi Griliches," IZA Discussion Papers 2184, Institute for the Study of Labor (IZA).
  2. Richard Harris & Qian Cher Li & john.moffat@strath.ac.uk John, 2010. "The Impact of Higher Education Institution-Firm Knowledge Links on Firm-level Productivity in Britain," Working Papers 1017, University of Strathclyde Business School, Department of Economics.
  3. Enrico Moretti, 2002. "Estimating the Social Return to Higher Education: Evidence From Longitudinal and Repeated Cross-Sectional Data," NBER Working Papers 9108, National Bureau of Economic Research, Inc.
  4. Lange, Fabian & Topel, Robert, 2006. "The Social Value of Education and Human Capital," Handbook of the Economics of Education, Elsevier.
  5. Michael Grossman, 2005. "Education and Nonmarket Outcomes," NBER Working Papers 11582, National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:str:wpaper:1204. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kirsty Hall).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.