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Updating the analysis of the determinants of the demand for education

  • Guy TCHIBOZO
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    Economic analysis of the determinants of the demand for education has been developed first in terms of human capital theory, and thereafter in terms of competing theories : radicalism, filter, signal, job competition. Developed in the seventies, these approaches remain dominant today, even though, since the eighties, recent economic analysis make it possible to find new interpretations. Particularly, unemployment theories and overlapping generations models of intra-family tranfers show that the demand for education may be not only simply liberated but also additionaly created by public education and employment policies. These state interventions are justified when market and family are defaulting, labor productivity insufficient, employment and demand for education sub-optimal. In this framework, state interventions stimulate the demand for education by direct supply of education, subsidizing households, and public employment of long-term unemployed.. Keywords : Demand for education – Educational investment – Supply of education – Inter-generations transfers – Intra-family transfers.

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    Paper provided by Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg in its series Working Papers of BETA with number 9916.

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    Date of creation: 1999
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    Handle: RePEc:ulp:sbbeta:9916
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    1. CREMER, Helmuth & KESSLER, Denis & PESTIEAU, Pierre, . "Intergenerational transfers within the family," CORE Discussion Papers RP 970, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
    3. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August.
    4. Gintis, Herbert, 1971. "Education, Technology, and the Characteristics of Worker Productivity," American Economic Review, American Economic Association, vol. 61(2), pages 266-79, May.
    5. BARHAM, Vicky & BOADWAY, Robin & MARCHAND, Maurice & PESTIEAU, Pierre, 1992. "Education and the poverty trap," CORE Discussion Papers 1992010, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Belman, Dale & Heywood, John S, 1991. "Sheepskin Effects in the Returns to Education: An Examination on Women and Minorities," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 720-24, November.
    7. Michael P. Keane & Kenneth I. Wolpin, 1995. "The career decisions of young men," Working Papers 559, Federal Reserve Bank of Minneapolis.
    8. Balestrino, Alessandro, 1997. "Education policy in a non-altruistic model of intergenerational transfers with endogenous fertility," European Journal of Political Economy, Elsevier, vol. 13(1), pages 157-169, February.
    9. Ryoo, Jai-Kyung & Nam, Young-Sook & Carnoy, Martin, 1993. "Changing rates of return to education over time: A Korean case study," Economics of Education Review, Elsevier, vol. 12(1), pages 71-80, March.
    10. Bazen, Stephen & Skourias, Nicolas, 1997. "Is there a negative effect of minimum wages on youth employment in France?," European Economic Review, Elsevier, vol. 41(3-5), pages 723-732, April.
    11. Acemoglu, Daron, 1995. "Public Policy in a Model of Long-Term Unemployment," Economica, London School of Economics and Political Science, vol. 62(246), pages 161-78, May.
    12. Heywood, John S., 1994. "How widespread are sheepskin returns to education in the U.S.?," Economics of Education Review, Elsevier, vol. 13(3), pages 227-234, September.
    13. Alba-Ramirez, Alfonso & San Segundo, Maria Jesus, 1995. "The returns to education in Spain," Economics of Education Review, Elsevier, vol. 14(2), pages 155-166, June.
    14. Roed, Knut, 1998. " Egalitarian Wage Policies and Long-Term Unemployment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(3), pages 611-25, September.
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