Social and Private Benefits of Higher Education
We know that education is a merit good and consumption of merit goods create positive externality effects; this is where the social benefit form consumption exceeds the private benefit. The private benefits of undertaking and completing a course of study in higher education are numerous. Employers tend to value graduate’s skills, which is why there is greater chance of being employed. Another benefit is that the salary the graduate is likely to earn.
Someone who has gone into higher education will have a higher future earning compared to someone who has not got a degree. The income gap between university graduates has increased considerably over time. The earning benefits to the average graduate are high enough to recover both the cost of tuition fees and costs during the universities years in a short period of time. There are many social benefits that occur from people going to universities. People who have gone through higher education will be more specialised in their field of study.
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This allows the whole society to take advantage in their depth of knowledge and skills. For example doctors can help those that are sick and poorly in the community. This will mean that more people in this community will survive for longer, creating an “aging population”. A higher level of education also corresponds to lower levels of unemployment and poverty. So in addition to contributing more towards tax revenues than others do; people with higher levels of education are less likely to rely on social safety-net programs (e. . Dole), generating a decrease on public budgets. Graduates are also more likely to vote in elections, therefore this will have an effect on the way government works. Graduates are also thought to help with their children’s education. Hypothetically this could form a cycle where generations become smarter and fit to pass their wealth of knowledge. It is believed that higher education is correlated with higher levels of community participation such as volunteer work.