ABSTRACT
It has been shown above1 that education can be regarded as an investment, that is something which is purchased for the sake of the benefits which it is expected to yield in the future. This is opposed to the consumption view, where education is regarded as an end in itself irrespective of any future benefits. There are two aspects of education as an investment, the private and the social. The private returns aspect considers the relation between the costs incurred by private individuals in obtaining education and the benefits they, as individuals, derive from this education. The social aspect considers the relation between costs and benefits accruing to society as a whole. We consider private returns in this chapter and social returns in Chapter 4.
