In this unit we are introduced to the economics of distance education. We know education is seen as an investment in human capital. The term “human capital” implies treating people as a commodity with a numeric value (Schultz, 1961). Some people find this term difficult to accept as it turns a person into a commodity; but it’s important to look at a human in objective terms, in terms of the value they bring to a business when evaluating whether to hire or promote them, and what to pay.
Education, therefore, is critical because of the value it adds to a person. Isn’t that why we’re in this Master’s program? To add value to our professional marketability?
We read an interesting article on whether education is an elixir or snake oil. I personally believe, coming from a high tech field, that education is the elixir. And the school from which one graduates adds even more value. Business and government institutions will pay more for the individual with more education; but as Wolf (2002) explains, not all education is created equal. Some degrees are worth more than others. This is commonly known and understood, but what isn’t common knowledge is the cost of education to society as a whole. To the individual, the cost of education, besides the out-of-pocket expenses, is the money they are not earning while in school and not working. To society, the costs are looked at in terms of whether or not the results of such costs benefit society as a whole.
Overall, studies show that educated persons will earn more over their lifetime than their less educated peers (Wolf, 2002).
References
Schultz, T.W. (1961) Investment in human capital. The American Economic Review, 51(1), 1-17. Retrieved from
Wolf, A. (2002). Elixir or snake oil? Can education really deliver growth? In A. Wolf (Ed.), Does education matter? Myths about education and economic growth (pp. 13-55). London: Penguin books.
Gail Wingate ePortfolio 