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Unformatted text preview: Urban Economics Lecture 11-9 When do you use rules, provision, subsidies? Education (continued): cities are an excellent place for education lots of variety lots of face to face interaction possible information technology in cities lots of "noise" in this area people are always upset about education usually it is getting worse education is improving in the US school retainment has been increasing (how long people stay in school) 10% to 30% --> % of college graduates 60% to 89%--> % of high school grads dropout rate is improving (less dropouts) overall upward trend of test scores in the US increases in education in the US are not as great as in other developed countries Singapore, Korea, Taiwan- better test scores % college graduates higher in Europe now Education has become much more expensive in the US (approx. 3 X as much as in 1970) This is to be expected Major cost input: teachers (elementary and secondary) In the US, they are women mostly, and you want them to be educated What's going on in the past 30 years with each of these things? 1-Relative wage of educated people has gone up (much higher return to education) Drawing people from a group where the private sector return is increasing Dealing with a more expensive input 2-Women have better job opportunities right now women's wages relative to mens have gone up considerably 1960- smart woman, could be a teacher, until you are married and pregnant and they would throw you out cheaper to hire women in 1960 as alternatives for educated women have increased (women doctors and lawyers were very rare in the 60's) their wages have also increased Hence price of education has gone up! while input has gotten more expensive, the output has improved, education has improved! Improvement in cognitive ability and achievement is not solely due to better teachers 1-Unleaded gasoline has made us more smart than our parents (this happened in 1980) 2-Smaller families, more attention to kids 3-Better educated parents (very few were college educated in 1960, a lot more are now) 4-TV, Internet, etc. has helped education 5-Better pre-natal care, less smoking and alcohol for mothers, better drugs, less discrimination (kids taking prescription drugs now for better education, brain function,...
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- Spring '11