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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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    References listed on IDEAS

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    JEL classification:

    • I2 - Health, Education, and Welfare - - Education

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