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A comparative analysis of education costs and outcomes: The United States vs. other OECD countries

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  • Wolff, Edward N.
  • Baumol, William J.
  • Saini, Anne Noyes

Abstract

In this paper we confirm the universality of steadily rising education expenditures among OECD nations, as predicted by “Baumol and Bowen's cost disease”, and show that this trajectory of costs can be expected to continue for the foreseeable future. However, we find that while the level of education costs in America is significantly higher than that of all other OECD countries, education spending per student in the United States is increasing about as quickly as it is in many other countries—perhaps even less quickly. Although these cost increases undoubtedly will contribute to each nation's fiscal problems, we conclude that effective education contributes to improvement of the economic performance of each country and can mitigate resulting financial pressures by spurring growth in overall purchasing power.

Suggested Citation

  • Wolff, Edward N. & Baumol, William J. & Saini, Anne Noyes, 2014. "A comparative analysis of education costs and outcomes: The United States vs. other OECD countries," Economics of Education Review, Elsevier, vol. 39(C), pages 1-21.
  • Handle: RePEc:eee:ecoedu:v:39:y:2014:i:c:p:1-21
    DOI: 10.1016/j.econedurev.2013.12.002
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    References listed on IDEAS

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    Cited by:

    1. Manabu Nose, 2017. "Estimation of drivers of public education expenditure: Baumol’s effect revisited," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(3), pages 512-535, June.
    2. Catalin Dragomirescu-Gaina, 2015. "An empirical inquiry into the determinants of public education spending in Europe," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-24, December.
    3. Emilie Dargaud & Frédéric Jouneau-Sion, 2019. "The good MOOC and the universities," Working Papers halshs-01996582, HAL.
    4. Irina V. Zastrozhnikova & Nadiia V. Datsii & Nelya M. Filyanina & Petro S. Oleshko & Nataliia M. Shkvorchenko & Liliia A. Martynets, 2020. "Financial and Economic Support of the Organization of the Educational Process," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 1), pages 299-309.
    5. Abankina, I. & Filatova, L. & Vynaryk, V., 2016. "State Policy of Higher Education Sector Financing under the Budgetary Constraints," Journal of the New Economic Association, New Economic Association, vol. 31(3), pages 111-143.
    6. Abankina, I., 2019. "Financing of Education: Trend on Personalization," Journal of the New Economic Association, New Economic Association, vol. 41(1), pages 216-225.
    7. Dian-Fu Chang & Jhen-Yu You & Angel Chang, 2023. "College Students’ Civic Engagement Efficacy and Their Implementing Effects in Selected STEM Programs," SAGE Open, , vol. 13(4), pages 21582440231, December.
    8. Emilie Dargaud & Frédéric Jouneau-Sion, 2019. "The good MOOC and the universities," Working Papers 1905, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    9. Dian-Fu Chang & Wen-Ching Chou & Tien-Li Chen, 2022. "Comparing Gender Diversity in the Process of Higher-Education Expansion in Japan, Korea, Taiwan, and the UK for SDG 5," Sustainability, MDPI, vol. 14(17), pages 1-20, September.
    10. Iwona Kowalska, 2016. "Sources Of Financing Knowledge-Based Economy: The Case Of Formal, Non-Formal And Informal Education In Poland," Oeconomia Copernicana, Institute of Economic Research, vol. 7(1), pages 75-90, March.
    11. Abankina, I. & Abankina, T., 2020. "Equality of rights vs equality of opportunities in higher education," Journal of the New Economic Association, New Economic Association, vol. 47(3), pages 205-214.
    12. Vanesa D’Elia & Gustavo Ferro, 2019. "Empirical Efficiency Measurement in Higher Education: An Overview," CEMA Working Papers: Serie Documentos de Trabajo. 708, Universidad del CEMA.
    13. Dragomirescu-Gaina, Catalin & Freitas, Maria, 2017. "The social and economic preferences of a tech-savvy generation," MPRA Paper 84232, University Library of Munich, Germany.
    14. Wolff, Edward N., 2015. "Educational expenditures and student performance among OECD countries," Structural Change and Economic Dynamics, Elsevier, vol. 33(C), pages 37-57.

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    More about this item

    Keywords

    Cost disease; Education; Costs; Productivity; International comparison;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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