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Educational Reforms and Their Positive Externalities on the Labor Market

Author

Listed:
  • Elsenberger, Fabio

    (Zurich University of Applied Sciences (ZHAW))

  • Kendzia, Michael Jan

    (Zurich University of Applied Sciences (ZHAW))

Abstract

Educational reforms aim to improve education quality and accessibility, creating positive externalities like individual growth and societal benefits. Although the global educational attainment has progressed, disparities still exist. This study applies the four-cell matrix developed by Münich and Psacharopoulos (2018) as analytical framework to classify the benefits of schooling into four different quadrants. It distinguishes between private and social benefits on the x-axis and market and non-market benefits on the y-axis. The survey finds that educational reforms and policies significantly impact society's development and progress, improving economic growth, social mobility, and health outcomes. By and large, the investigated reforms vary by country and education level, with some focusing on primary education and access to education while others focus more on tertiary education. The findings reveal that large differences exist in how far certain reforms were already implemented. Developing nations mainly experience non-market benefits like improved health and disease reduction, while developed countries show positive externalities in market and non-market areas. Reforms targeting tertiary education often translate into more positive externalities in the two private quadrants.

Suggested Citation

  • Elsenberger, Fabio & Kendzia, Michael Jan, 2023. "Educational Reforms and Their Positive Externalities on the Labor Market," IZA Discussion Papers 16435, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16435
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    References listed on IDEAS

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    1. Luiz de Mello & Mombert Hoppe, 2005. "Education Attainment in Brazil: The Experience of FUNDEF," OECD Economics Department Working Papers 424, OECD Publishing.
    2. David M. Cutler & Adriana Lleras-Muney, 2006. "Education and Health: Evaluating Theories and Evidence," NBER Working Papers 12352, National Bureau of Economic Research, Inc.
    3. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
    4. Hanushek, Eric A. & Woessmann, Ludger, 2015. "The Knowledge Capital of Nations: Education and the Economics of Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262029170, December.
    5. Thomas S. Dee & Brian Jacob, 2011. "The impact of no Child Left Behind on student achievement," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 30(3), pages 418-446, June.
    6. Joshua C. Hall, 2006. "Positive Externalities and Government Involvement in Education," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 22(Spring 20), pages 165-175.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    educational reforms; market benefits; non-market benefits; private benefits; social benefits;
    All these keywords.

    JEL classification:

    • I0 - Health, Education, and Welfare - - General
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy

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