ABSTRACT

This chapter provides an overview of spending on education in the context of national income in organisation for economic cooperation and development countries. It examines three broad justifications for national spending on education: increasing productivity and income; reducing inequality and increasing social mobility, and empowering citizens. The value of education to a country entails more than a simple addition of the value of education to each person in that country. Education for one person has consequences for others which need to be taken into account. The interaction of supply and demand for education in a country results in a pattern of provision that can run counter to individuals' motivations for wanting more education. A desire to become more educated for its own sake can have unintended consequences for inequality. Causation between education and each of income, inequality, citizens' fulfilment, social integration and well-being runs in both directions.