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Do higher levels of education and skills in an area benefit wider society?

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  • John V. Winters

    (Oklahoma State University, USA, and IZA, Germany)

Abstract

Formal schooling increases earnings and provides other individual benefits. However, societal benefits of education may exceed individual benefits. Research finds that increased average education levels in an area are correlated with higher earnings, even for locals with relatively little education. Science, technology, engineering, and mathematics (STEM) graduates appear to have especially strong external effects, due to their role in stimulating innovation and economic growth. Several strategies to test for causality find human capital externalities do exist.

Suggested Citation

  • John V. Winters, 2015. "Do higher levels of education and skills in an area benefit wider society?," IZA World of Labor, Institute of Labor Economics (IZA), pages 130-130, March.
    • Handle: RePEc:iza:izawol:journl:y:2015:n:130
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Chise Diana & Fort Margherita & Monfardini Chiara, 2021. "On the Intergenerational Transmission of STEM Education among Graduate Students," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(1), pages 115-145, January.
    2. Vivian Welch & Christine Mathew & Luciana M. Marins & Elizabeth T. Ghogomu & Sierra Dowling & Salman Abdisalam & Mohamad T. Madani & Emma Murphy & Kisanet Kebedom & Jennifer Ogborogu & Kelly Gallagher, 2020. "PROTOCOL: Adult skills development and training in high‐income countries: A Campbell evidence and gap map," Campbell Systematic Reviews, John Wiley & Sons, vol. 16(4), December.
    3. Kunwon Ahn & John V. Winters, 2023. "Does education enhance entrepreneurship?," Small Business Economics, Springer, vol. 61(2), pages 717-743, August.
    4. Chise, Diana & Fort, Margherita & Monfardini, Chiara, 2019. "Scientifico! like Dad: On the Intergenerational Transmission of STEM Education in Italy," IZA Discussion Papers 12688, Institute of Labor Economics (IZA).
    5. Diana Chise & Margherita Fort & Chiara Monfardini, 2020. "Scientifico! like Dad: On the Intergenerational Transmission of STEM Education," FBK-IRVAPP Working Papers 2020-01, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    6. Aboal, Diego & Perera, Marcelo & Tacsir, Ezequiel & Vairo, Maren, 2018. "A guide for the evaluation of programs of human capital training for science, technology and innovation," MERIT Working Papers 2018-031, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    More about this item

    Keywords

    human capital; education; schooling; externalities; earnings; employment;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • I2 - Health, Education, and Welfare - - Education

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