Resource Allocation in Education

TL;DR: In this article, the balance between private and social costs and benefits, between academic levels of education, between types of education and between male and female education, is discussed, and conclusions on particular aspects of the general problem of allocating resources within formal education are presented.

Abstract: The paper is devoted to the question of how to allocate a given educational budget. Alternative avenues of expenditure on post‐secondary education are treated as investment projects and their benefit‐cost ratios are compared. The analysis is essentially static and is based on two investigations carried out by the author, one in Canada, the other in the United Kingdom. The paper is organised into three sections. The first discusses the methodology underlying the two detailed studies. The second presents conclusions on particular aspects of the general problem of allocating resources within formal education, and is divided into four parts: the balance between private and social costs and benefits, between academic levels of education, between types of education and between male and female education. The final section of the paper contains four more general points and emphasises our ignorance in much of this area.