The system-wide impacts of the external benefits to higher education on the Scottish economy: An exploratory â€œmicro-to-macro"Â approach
The private market benefits of education, i.e. the wage premia of graduates, are widely studied at the micro level, although the magnitude of their macroeconomic impact is disputed. However, there are additional benefits of education, which are less well understood but could potentially drive significant macroeconomic impacts. Following the taxonomy of McMahon (2009) we identify four different types of benefits of education. These are: private market benefits (wage premia); private non market benefits (own health, happiness, etc.); external market benefits (productivity spillovers; and external non-market benefits (crime rates, civic society, democratisation, etc.). Drawing on available microeconometric evidence we use a micro-to-macro simulation approach (Hermannsson et al, 2010) to estimate the macroeconomic impacts of external benefits of higher education. We explore four cases: technology spillovers from HEIs; productivity spillovers from more skilled workers in the labour market; reduction in property crime; and the potential overall impact of external and private non-market benefits. Our results suggest that the external economic benefits of higher education could potentially be very large. However, given the dearth of microeconomic evidence this result should be seen as tentative. Our aim is to illustrate the links from education to the wider economy in principle and encourage further research in the field.
|Date of creation:||Jun 2012|
|Contact details of provider:|| Postal: Sir William Duncan Building, 130 Rottenrow, Glasgow G4 0GE|
Phone: +44 (0)141 548 3842
Fax: +44 (0)141 548 4445
Web page: http://www.strath.ac.uk/economics/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Moretti, Enrico, 2004.
"Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data,"
Journal of Econometrics,
Elsevier, vol. 121(1-2), pages 175-212.
- Enrico Moretti, 2002. "Estimating the Social Return to Higher Education: Evidence From Longitudinal and Repeated Cross-Sectional Data," NBER Working Papers 9108, National Bureau of Economic Research, Inc.
- Grossman, Michael, 2006. "Education and Nonmarket Outcomes," Handbook of the Economics of Education, Elsevier.
- Michael Grossman, 2005. "Education and Nonmarket Outcomes," NBER Working Papers 11582, National Bureau of Economic Research, Inc.
- R. Harris & Q. C. Li & J. Moffat, 2011. "The impact of higher education institution-firm knowledge links on firm-level productivity in Britain," Applied Economics Letters, Taylor & Francis Journals, vol. 18(13), pages 1243-1246.
- Richard Harris & Qian Cher Li & email@example.com John, 2010. "The Impact of Higher Education Institution-Firm Knowledge Links on Firm-level Productivity in Britain," Working Papers 1017, University of Strathclyde Business School, Department of Economics.
- Harris, Richard & Moffat, John & Lib, Qian Cher, 2010. "The Impact of Higher Education Institution-Firm Knowledge Links on Firm-level Productivity in Britain," SIRE Discussion Papers 2010-65, Scottish Institute for Research in Economics (SIRE).
- James Heckman, 2010. "Contributions of Zvi Griliches," NBER Chapters, in: Contributions in Memory of Zvi Griliches, pages 5-22 National Bureau of Economic Research, Inc.
- James J. Heckman, 2005. "Contributions of Zvi Griliches," Annals of Economics and Statistics, GENES, issue 79-80, pages 5-22.
- Heckman, James J., 2006. "Contributions of Zvi Griliches," IZA Discussion Papers 2184, Institute for the Study of Labor (IZA).
- James Heckman, 2006. "Contributions of Zvi Griliches," NBER Working Papers 12318, National Bureau of Economic Research, Inc.
- Lange, Fabian & Topel, Robert, 2006. "The Social Value of Education and Human Capital," Handbook of the Economics of Education, Elsevier. Full references (including those not matched with items on IDEAS)