Examine the arguments which have been advanced to support an increase in the number of students in higher education in the UK

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Economics of Public Issues!

Coursework!

N0089998!

Economics of Public Issues (ECON20091) Coursework                                        N0089998

Question!

Examine the arguments which have been advanced to support an increase in the number of students in higher education in the UK.

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Answer!

Education has numerous consequences for individuals and society. For many people, there is some “consumption value” from the educational process. Human beings are curious creatures, and they enjoy learning and acquiring new knowledge. Education also has considerable “investment value.” Those who acquire additional schooling generally earn more over their lifetimes, achieve higher levels of employment, and enjoy more satisfying careers. Education may also enable people to more fully enjoy life, appreciate literature and culture, and be more informed and socially involved citizens.

This discussion is concerned with the economic implications of expanding higher education.  It is not concerned with the policy of expansion more generally; though it concludes in passing that there are strong reasons to expand higher education on the grounds of social equity, and the social benefits arising from having a well-educated population.

Successive governments have produced white papers on education and competitiveness which emphasise skills, including high-level skills, as the crucial source of sustainable competitive advantage for the future. Nor is it only in this country that governments have embraced New Growth Theories - whether explicitly, or implicitly by relying on expanding higher education in order to drive economic growth.

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Despite the evidence of a rough balance between graduate supply and demand, based on existing trends, there is a strong and widespread belief that an increasing number of graduates, and thereby an increase in the nation's human capital, will lead to increased productivity and therefore economic growth. New Growth Theories make the case that education policy can impact economic growth in a decisive way. The key contention of New Growth Theories is that a more highly skilled worker is a more productive worker. The logic of the argument is then very appealing. An increase in skills produces an increase in ...

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