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Private and Social Returns to Education

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  • Enrico Moretti

    (University of California, Berkeley NBER, CEPR and IZA)

Abstract

Investment in human capital generates significant private returns. Why do governments use public funds to subsidize an investment that has significant private benefits? In this paper, I explore the theoretical rationales for public intervention in education, with a particular focus on human capital externalities. I also describe the existing empirical evidence on the relevance of each of these rationales.

Suggested Citation

  • Enrico Moretti, 2006. "Private and Social Returns to Education," Rivista di Politica Economica, SIPI Spa, vol. 96(3), pages 3-46, May-June.
    • Handle: RePEc:rpo:ripoec:v:96:y:2006:i:3:p:3-46
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    File URL: http://www.rivistapoliticaeconomica.it/2006/mag-giu/moretti.pdf
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    Cited by:

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    2. Lisa Grazzini, 2009. "Istruzione, Crescita e Democrazia: le Teorie della Complessa Relazione," Working Papers - Economics wp2009_01.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    3. Sakari Lähdemäki & Eero Lehto & Eero Mäkynen, 2018. "The Role of Natural Resources and Geography for Productivity in Developed Countries," Working Papers 320, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    4. Hermannsson, Kristinn & Lisenkova, Katerina & Lecca, Patrizio & McGregor, Peter G. & Swales, Kim, 2012. "The system-wide impacts of the external benefits to higher education on the Scottish economy: An exploratory micro-to-macro approach," SIRE Discussion Papers 2012-70, Scottish Institute for Research in Economics (SIRE).

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