The Economics of Education: is it Profitable to be Ignorant?

摘要

In the UK, formal tertiary education comes at monetary cost to those who choose to participate. Currently 43% of young people enter universities in the belief that they will recoup the expense in higher salaries, later in life. Whilst this is a historically true model for the majority of graduates, many analysts believe that the Government's push for 50% participation, coupled with rising costs to attend universities, could alter the profitability of higher education and instead lead to a situation where ignorance is not only bliss but also an economically sound decision. This paper explores the current situation concerning the economic benefit of higher education: building a model to represent this situation. Key variables and values are then highlighted and discussed, in this current research project, to test whether they could take the current situation over the tipping-point.