Assignment 2: Externalities of Education
Professor George A. Uhimchuk
ECO405 – Economic Problems & Issues
Summer Term 2012
In economics, an externality is a cost or benefit that is not transmitted through prices and is incurred by a party who was not involved either as a buyer or seller of the good or service causing the cost or benefit. The positive externalities of education include, but are not limited to, a well-educated workforce that is more competent and productive at their jobs, a higher paid workforce, as well as a socio-cultural diversity in the workforce.
A well educated work force comes from a quality education, whether public or private. A quality ...view middle of the document...
Having this type of upbringing has a positive externality in itself. Having a socio-cultural education system caters to help stop racism and discrimination. Being able to grow up in school with many different cultures is both economically and socially positive.
While there are positives for both a public and privately funded school system, this writer is for the public school-system. Public schools are free for any and all school-aged children to attend, whereas a private school has applications, fees among other things for a child to attend. Public schools are also more prone to have the socio-cultural diversity in them than a private school. Public schools have multiple options for achieving the full benefits of education. These options include virtual schooling, online schooling, home schooling, and charter schools. Virtual, online and home schools approaches to education are paced to each individual student, while being a significantly lower cost than private schooling. ...