ABOUT THE COURSE:Economics of Education became a sub-discipline of economics with the proliferation of publications and empirical research during the 1950s and 1960s. However, the momentum gained during those years gradually fizzled out in sharp contrast to other areas in economics, like the economics of health, which has now occupied a place in the basket of elective courses in many universities. Mark Blaug, who played a stellar role in shaping this sub-discipline during the early years, lamented the premature demise of the economics of Education. However, with Nobel prizes in economics awarded to Theodore Shultz and Gary Becker for their contributions in the realm of Education and human capital, and significant contributions from other Nobel laureates like Milton Friedman, Joseph Stiglitz, and Amartya Sen, the growth of the economics of Education as a field of study has never really stagnated. There has been an advancement in research in labour economics and growth theory in particular. At the same time, there is an increasing realization based on empirical studies that the generation and dissemination of knowledge have become prime movers of growth and that Education should play a larger role in the discourse on development theory. However, the economics of Education as a unified course weaving various pertinent areas together, where Education features prominently at the micro and macro level, has not been able to carve out space for itself in graduates in Economics.INTENDED AUDIENCE: PG/ Ph.D. Students from Humanities and Social SciencesPREREQUISITES: Any UG CourseINDUSTRY SUPPORT: UGC, NCTE

Syllabus

Week 1: Introduction to Economics of Education
History, Scope, and Importance
Education as Consumption vs. Investment
Week 2:Human Capital Theory (Gary Becker, Mincer)
Human vs. Physical Capital
Process and Sources of Human Capital Formation
Week 3:Endogenous Growth Theory (Lucas, Romer)
Linkage with Human Capital
Amartya Sen: Capability Approach & Education
Week 4:Alternative Theories: Signaling (Spence),
Screening Hypothesis Critiques of Human Capital Theory
Education and Labor Market Outcomes
Week 5:Educational Production Function
Inputs, Outputs, and Learning Outcomes
Technical and Allocative Efficiency
Week 6:Internal and External Efficiency
Total Factor Productivity in Education
Role of Institutions in Efficiency
Week 7:Cost of Education: Concepts (Opportunity, Unit, Sunk, Incremental)
Determinants of Educational Costs
Link with Productivity
Week 8:Cost-Benefit and Cost-Effectiveness Analysis
Rate of Return to Education
Application to Policy Decisions
Week 9:Education as Public, Private, Merit, and Mixed Goods
Externalities in School and Higher Education Winston’s "Awkward Economics of Higher Education"
Week 10:Artha Shastra (Kautilya, 4th century BCE)
Advocates state support for education, agriculture, and skill-training.
Stresses economic administration, taxation for welfare, and the role of knowledge in state prosperity.
Shows how education was linked to governance and economic stability.
Week 11:Educational Finance: History, Principles, Sources
Public vs. Private Funding
Educational Loans, PPPs, Income-contingent loans, Fees
Week 12:NEP 2020: HEQF, ABC, NCRF – Implications for Economics of Education
Equity, Access, and Efficiency Revisited: Future Directions and Emerging Debates