Economics of Education Study Guide - Julia Weinstock...

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Julia WeinstockEconomics of Education Study Guide-Intro StuffoEconomics of Education= how to allocate scarce resources ineducation system decision making; restraints because of scarcityoQuantitative Research Methods (McEwan)Descriptive=whatis happening?; establishes or refutespatterns in data; quantitative and qualitativeCausal= tests for cause and effect; quantitative (regressionanalysis);does it work?Assignment of treatment needs to berandomnoselection biasData does NOT have to be experimental to be causalIf factors (like ability) can NOT be controlled for, thenNOT causalRandom= “gold standard” methodProcess= why policy intervention does/does not affect policyoutcomes; qualitative observations;howdoes it workInternal validity= identifies causal link between program andoutcomeExternal validity= generalized causal linkSelection bias= certain factors unaccounted for leading toskewed experimental groupNo experiment is perfectExperimental= randomTreatment group= people that were subjected to policyCounterfactual= go back in time and see outcome if nottreatmentControl groupProblem=selection biasnot randomQuasi-experimental= selection or randomNon- experimental= selectionWays to Determine Causal or NotPropensity Score Margin= assign probability score perstudent; probability that they receive treatmentRegression Discontinuity= some cutoff existsDifference in Differences= take same group andcomparebefore and afterresults-Private Investment in Education- Human Capital TheoryoHuman Capital Theory: increased schoolingincreased productivityincreased wages (fromgeneral, secondary schooling)
Human capital= intangible, intrinsic capabilities, skills, yearsof schooling and trainingcan be increased through investment in educationWhy do people get educated?
What affects demand for an extra year of education?
Who affects the cost of one more year (supply) of education?

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