IDEAS home Printed from https://ideas.repec.org/a/ucp/jpolec/v85y1977i3p569-97.html
   My bibliography  Save this article

Education: Consumption or Production?

Author

Listed:
  • Lazear, Edward P

Abstract

It can be claimed that education is simply a normal consumption good and that like all other normal goods, an increase in wealth will produce an increase in the amount of schooling purchased. Increased incomes are associated with higher schooling attainment as the simple result of an income effect. If this is so, schooling increases an individual's wealth only by the consumption value of the good, since it is a non-saleable asset. This paper will attempt to determine empirically the amount by which an increase in wealth is caused by schooling as distinguished from the amount by which the demand for schooling increases as the result of an increase in wealth.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Lazear, Edward P, 1977. "Education: Consumption or Production?," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 569-597, June.
  • Handle: RePEc:ucp:jpolec:v:85:y:1977:i:3:p:569-97
    DOI: 10.1086/260584
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/260584
    File Function: full text
    Download Restriction: Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JPE for details.

    File URL: https://libkey.io/10.1086/260584?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Griliches, Zvi & Mason, William M, 1972. "Education, Income, and Ability," Journal of Political Economy, University of Chicago Press, vol. 80(3), pages 74-103, Part II, .
    2. Benham, Lee, 1974. "Benefits of Women's Education within Marriage," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 57-71, Part II, .
    3. Edward Lazear, 1977. "Schooling as a Wage Depressant," Journal of Human Resources, University of Wisconsin Press, vol. 12(2), pages 164-176.
    4. Lee Benham, 1974. "Benefits of Women's Education within Marriage," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 57-75, National Bureau of Economic Research, Inc.
    5. Levhari, David & Weiss, Yoram, 1974. "The Effect of Risk on the Investment in Human Capital," American Economic Review, American Economic Association, vol. 64(6), pages 950-963, December.
    6. Welch, F, 1970. "Education in Production," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 35-59, Jan.-Feb..
    7. Lee Benham, 1974. "Benefits of Women's Education within Marriage," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 375-394, National Bureau of Economic Research, Inc.
    8. Parsons, Donald O, 1974. "The Cost of School Time, Foregone Earnings, and Human Capital Formation," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 251-266, Part I, M.
    9. Bowles, Samuel, 1972. "Schooling and Inequality from Generation to Generation," Journal of Political Economy, University of Chicago Press, vol. 80(3), pages 219-251, Part II, .
    10. Robert T. Michael, 1974. "Education and the Derived Demand for Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 120-159, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert H. Haveman & Barbara L. Wolfe, 2002. "Social and nonmarket benefits from education in an advanced economy," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 47(Jun), pages 97-142.
    2. repec:eee:labchp:v:1:y:1986:i:c:p:357-386 is not listed on IDEAS
    3. Basu, Kaushik & Narayan, Ambar & Ravallion, Martin, 1999. "Is knowledge shared within households?," Policy Research Working Paper Series 2261, The World Bank.
    4. Parsons, Donald O, 1977. "Health, Family Structure, and Labor Supply," American Economic Review, American Economic Association, vol. 67(4), pages 703-712, September.
    5. repec:hal:spmain:info:hdl:2441/45je9bvs5880japj06cptntfoa is not listed on IDEAS
    6. Chong Huang & Hongbin Li & Pak Wai Liu & Junsen Zhang, 2009. "Why Does Spousal Education Matter for Earnings? Assortative Mating and Cross-Productivity," Journal of Labor Economics, University of Chicago Press, vol. 27(4), pages 633-652, October.
    7. Tokunaga, Mutsumi & Hashimoto, Hideki, 2017. "The socioeconomic within-gender gap in informal caregiving among middle-aged women: Evidence from a Japanese nationwide survey," Social Science & Medicine, Elsevier, vol. 173(C), pages 48-53.
    8. Liu, Hui & Chopik, William J. & Shrout, M. Rosie & Wang, Juwen, 2024. "A national longitudinal dyadic analysis of spousal education and cognitive decline in the United States," Social Science & Medicine, Elsevier, vol. 343(C).
    9. Åström, Johanna, 2011. "The Effects of Spousal Education on Individual Earnings – A Study of Married Swedish Couples," HUI Working Papers 32, HUI Research.
    10. Åström, Johanna, 2009. "The Effects of Assortative Mating on Earnings: Human Capital Spillover or Specialization?," HUI Working Papers 34, HUI Research.
    11. Mohammad Niaz Asadullah, 2006. "Returns to Education in Bangladesh," Education Economics, Taylor & Francis Journals, vol. 14(4), pages 453-468.
    12. Basu, Kaushik & Narayan, Ambar & Ravallion, Martin, 2001. "Is literacy shared within households? Theory and evidence for Bangladesh," Labour Economics, Elsevier, vol. 8(6), pages 649-665, December.
    13. repec:eee:labchp:v:1:y:1986:i:c:p:525-602 is not listed on IDEAS
    14. Francesconi, Marco & Brynin, Malcolm, 2002. "The material returns to partnership: the effects of educational matching on labour market outcomes and gender equality," ISER Working Paper Series 2002-23, Institute for Social and Economic Research.
    15. Lisa Jepsen, 2005. "The Relationship Between Wife’s Education and Husband’s Earnings: Evidence from 1960 to 2000," Review of Economics of the Household, Springer, vol. 3(2), pages 197-214, June.
    16. Liu, Jin-Tan & Hammitt, James K. & Jeng Lin, Chyongchiou, 1999. "Family background and returns to schooling in Taiwan," Economics of Education Review, Elsevier, vol. 19(1), pages 113-125, February.
    17. Danziger, Leif & Neuman, Shoshana, 1999. "On the age at marriage: theory and evidence from Jews and Moslems in Israel," Journal of Economic Behavior & Organization, Elsevier, vol. 40(2), pages 179-193, October.
    18. Kantarevic, Jasmin, 2004. "Interethnic Marriages and Economic Assimilation of Immigrants," IZA Discussion Papers 1142, Institute of Labor Economics (IZA).
    19. Jeroen Smits, 2001. "Career Migration, Self-selection and the Earnings of Married Men and Women in the Netherlands, 1981-93," Urban Studies, Urban Studies Journal Limited, vol. 38(3), pages 541-562, March.
    20. Reuben GRonau, 1981. "Wives' Labor Force Participation, Wage Differentials and Family Income Inequality: The Israeli Experience," NBER Working Papers 0668, National Bureau of Economic Research, Inc.
    21. Arnaud Dupuy & Alfred Galichon, 2012. "Canonical Correlation and Assortative Matching: a remark," Working Papers 2012/40, Maastricht School of Management.
    22. Choi, Hyung-Jai & Joesch, Jutta M. & Lundberg, Shelly, 2008. "Sons, daughters, wives, and the labour market outcomes of West German men," Labour Economics, Elsevier, vol. 15(5), pages 795-811, October.
    23. Solomon W. Polachek, 2002. "Trade-Based Interactions: an Interdisciplinary Perspective," Conflict Management and Peace Science, Peace Science Society (International), vol. 19(2), pages 1-21, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jpolec:v:85:y:1977:i:3:p:569-97. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JPE .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.