Education and Nonmarket Outcomes

100 Pages Posted: 19 Oct 2005 Last revised: 26 Aug 2010

See all articles by Michael Grossman

Michael Grossman

National Bureau of Economic Research (NBER), NY Office; CUNY The Graduate Center - Department of Economics

Date Written: August 2005

Abstract

I explore the effects of education on nonmarket outcomes from both theoretical and empirical perspectives. Examples of outcomes considered include general consumption patterns at a moment in time, savings and the rate of growth of consumption over time, own (adult) health and inputs into the production of own health, fertility, and child quality or well-being reflected by their health and cognitive development. I pay a good deal of attention to the effects of education on health because they are the two most important sources of human capital: knowledge capital and health capital. There is a large literature addressing the nature of their complementarities. In the conceptual foundation section, I consider models in which education has productive efficiency and allocative efficiency effects. I then modify these frameworks to allow for the endogenous nature of schooling decisions, so that observed schooling effects can be traced in part to omitted "third variables" such as an orientation towards the future. An additional complication is that schooling may contribute to a future orientation. The empirical review provides a good deal of evidence for the proposition that the education effects are causal but is less conclusive with regard to the identification of specific mechanisms.

Suggested Citation

Grossman, Michael, Education and Nonmarket Outcomes (August 2005). NBER Working Paper No. w11582. Available at SSRN: https://ssrn.com/abstract=795266

Michael Grossman (Contact Author)

National Bureau of Economic Research (NBER), NY Office ( email )

5 Hanover Square
16th Floor, Suite 1602
New York, NY 10004-2630
United States
917-261-3127 (Phone)
917-426-7105 (Fax)

HOME PAGE: http://mgrossman.ws.gc.cuny.edu

CUNY The Graduate Center - Department of Economics ( email )

365 Fifth Avenue, 5th Floor
New York, NY 10016
United States
212-817-7959 (Phone)
212-817-1597 (Fax)

HOME PAGE: http://mgrossman.ws.gc.cuny.edu

Register to save articles to
your library

Register

Paper statistics

Downloads
89
Abstract Views
1,806
rank
284,005
PlumX Metrics