Understanding the Contributions of Economics to Education Policy and Vice Versa

Abstract

This chapter explores the contributions of economics to education policy research and vice versa. Conceptually, economics offers standard, Marxian, public choice, and behavioral economic frameworks; education policy researchers have enhanced these frameworks by offering insight into relevant variables, processes, and outcomes. By the same token, education researchers not only have made use of quantitative methods refined by economists but in several cases have advanced them by adapting them to a domain that has its own special features. Education policy researchers have also been especially advanced in using qualitative methods both to generate new research topics and to fill in important details special to educational settings that are missed by quantitative analyses. Economists have also advanced the study of human capital by presenting the long-term private and social returns of education; in turn, education policy scholars have provided insight into the conditions necessary for education to yield positive returns on investment in education. Finally, education policy scholars have conducted research that can advance economists’ understanding of educational production processes, addressing how educational inputs combine to produce learning outcomes; economists have, in turn, encouraged education policy scholars to make resource allocation decisions based on cost-effectiveness rather than effectiveness alone and to look beyond short-term outcomes. The central theme of this chapter is that while current trends favor standard frameworks and causally robust quantitative methods, embracing a plurality of frameworks and methods, inspired by seminal figures in both economics and education research, could unlock advancements.

Keywords: economics; human capital; education production; quantitative methods; cost-effectiveness