Details
- Publication date
- 17 December 2014
- Authors
- Directorate-General for Education, Youth, Sport and Culture | European Expert Network on Economics of Education (EENEE)
- Geographical scope
- European Union
- Level of education focus
- Adult education
- Early childhood education and care (ECEC)
- Higher education
- School education
- Vocational education and training (VET)
- Thematic areas covered
- Education-to-work transitions, education and labour market
- Educational attainment and participation in education
- Educational effectiveness and efficiency
- Governance of education
- Investment in education, economic impact of education
- Lifelong learning
- Monitoring and quality assurance
- Quality and inclusive education for all
- Skills development
Description
This report presents the economic rationale for prioritizing education in policy-making. Education significantly boosts individual productivity, earnings, and employability, especially in knowledge-based economies like the EU.
At the macro level, it fuels long-run economic growth, with a 50-point improvement in PISA scores linked to a 1% rise in GDP growth. Simulations show that improving student achievement in the EU could yield €35 trillion in long-term gains. Unemployment is much higher among the low-educated, and skill levels strongly predict income. Beyond general education, early investment in quality education and governance reforms—like school autonomy and accountability—are key to efficiency.
The report urges a shift from inputs to outcomes, calling for reforms and further research to boost educational results.
Author
Ludger Woessmann
Cite as
Woessmann, L. (2014), The Economic Case for Education, EENEE Policy Briefing no. 5/2014.
