The benefit of these additional investments are sufficient to justify the costs.The net effect of these findings offers at least two possible conclusions: 1)
while increased investments in education may not be positive
al
Education is yet another of the inputs to human capital, as are health care and immigration. We understand generally that
investments in education improve household, individual, and state level incomes, but there is some question as to whether
or not the benefit of these additional investments are sufficient to justify the costs.
In developed nations, the United States in particular, increased investments in education in recent decades have provided
ambiguous results, suggesting that the marginal return is not always positive and that further investments may not provide
the necessary returns. Further, in periods where decreased per pupil investments in education are observed in the United
States the effects are statistically significant and highly positive, reflecting that decreases in these investments result in
decreased income and outcomes generally. The net effect of these findings offers at least two possible conclusions: 1)
while increased investments in education may not be positive, they may be necessary to maintain the nation’s already
relatively highly skilled human capital stock, and 2) the national education infrastructure is brittle and subject to a human
capital depreciation effect absent sustained levels of per pupil investment. BTW what
is not ambiguous is that increased
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