Page 16 - Education for Development:George Psacharopoulos University of Illinois at Urbana-Champaign, USA

14 ᐿ࿲ၾආӉj઺ԃٙɢඎ

growth rate of GDP (Dincer, 2011).

Externalities

That education has many benefits beyond what can be monetized has
been recognized since millennia. In 300BC Aristotle wrote: “If a man neglects
education, he walks lame to the end of his life”.

Several terms are being used in the literature all referring to the non-
monetary benefits of education such as non-pecuniary, non-market, non-
production, private, social, wide-social or external.

Documenting the non-monetary benefits of education has been the subject
of extensive research in recent years. In reading this evidence, a distinction
should be made between a correlation and the causal effect of education on non-

monetary outcomes. The reason is that a simple correlation might hide a myriad
of factors other than education that affect outcomes. For example, if more
educated people are more satisfied in life than less educated people, this might

be due to the fact the more educated have a higher income. In OECD countries,
education associates positively with a wide range of indicators.
The evidence presented below on each category of non-monetary benefits

is based on studies that have controlled for many factors other than education
that might affect outcomes. This is done by means of econometric techniques
and natural experiments that resulted in one group of the population receiving

a different level of education than the other due to factors not associated with
education or income.

Health

Beyond the level of income, more-educated people are more likely to