Educational expansion is usually given paramount consideration in the modern society. It is the dream of every parent to ensure his child acquires higher education. This desire has led to an immense expansion higher education in the United States over the twentieth century. It is explicit that higher education bears a wide range of benefits to individuals, as well as the government. Foremost, individuals with higher education benefit from what is referred to as positive selection. A utility maximization paradigm based on economic factors holds that attainment of higher education corresponds to high economic returns. The precepts of the positive selection hypothesis as described by Heckman, Urzua & Vytlacil (2006) hold that those who acquire higher education benefit most from it. As such, it is apparent that higher education has economic and social benefits. For instance, college graduates receive better remuneration than their counterparts with a high school diploma. It is also true that higher education attracts a high social esteem in the modern society. Despite these benefits, higher education has negative aspects too. Therefore, this paper aims at providing a comprehensive discussion of the negative aspects of higher education.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Negative Impact of Higher Education on Economy
- The Consequence of Up-front Fees
- Effect of Student-loan Debt
- Negative Impact of Higher Education on Human Capital
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to provide a comprehensive discussion of the negative aspects of higher education, contrasting the commonly held view of its solely positive economic and social benefits. It challenges the positive selection hypothesis, exploring the counter-intuitive consequences of policies aimed at increasing access to higher education.
- Economic inequality exacerbated by higher education
- The negative economic consequences of student loan debt
- The impact of higher education subsidies on human capital
- Capital market failures related to higher education financing
- The limitations of the positive selection hypothesis in explaining higher education outcomes
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This introductory section establishes the prevalent societal emphasis on higher education and its perceived benefits, based on a utility maximization paradigm and the positive selection hypothesis. However, it also highlights the paper's central focus: a detailed examination of the often-overlooked negative aspects of higher education and its impact on the economy and human capital. The introduction sets the stage for a critical analysis that challenges conventional assumptions surrounding the positive impacts of higher education.
Negative Impact of Higher Education on Economy: This chapter argues that educational expansion, while beneficial in many ways, contributes to increasing economic inequality. It highlights the significant disparity in economic status between college graduates and those with lower educational attainment. The chapter also discusses why this negative aspect is often overlooked, emphasizing the focus on the benefits of a skilled workforce and the high earnings of college graduates, thus ignoring the larger societal impact of this inequality.
The Consequence of Up-front Fees: This section examines the challenges in financing higher education, focusing on the consequences of government-assisted student loan programs. While designed to improve access for low-income students, the chapter points out the issues with loan eligibility criteria based on family income, neglecting individual circumstances and aspirations. The chapter also highlights the problem of increased loan default rates as a significant economic consequence of this financing model.
Effect of Student-loan Debt: This chapter explores the substantial negative economic and social consequences of rising student loan debt, particularly in the United States and Australia. It shows the devastating effect of high debt levels on household formation, retirement savings, and overall economic growth. The high default rates and the widespread impact on various age groups demonstrate the far-reaching consequences of this increasingly significant issue.
Negative Impact of Higher Education on Human Capital: This chapter analyzes the negative consequences of higher education subsidies on human capital. While subsidies increase enrollment, they also lead to grade inflation and potentially lower the overall quality of graduates due to an increase in less motivated and less academically-able students. The chapter explores the "enrollment effect," "composition effect," and "disincentive effect" of subsidies, arguing that these effects result in a net loss of human capital and that the increased graduation rates don't always translate into equivalent welfare gains.
Schlüsselwörter (Keywords)
Higher education, economic inequality, student loan debt, human capital, grade inflation, tuition subsidies, positive selection hypothesis, economic development, capital market failures, household formation, retirement security.
Frequently Asked Questions: Negative Aspects of Higher Education
What is the main focus of this paper?
This paper challenges the common perception that higher education solely benefits the economy and society. It delves into the often-overlooked negative aspects of higher education, exploring its impact on economic inequality, human capital, and individual financial well-being.
What are the key themes explored in the paper?
Key themes include the exacerbation of economic inequality by higher education, the negative economic consequences of student loan debt, the impact of higher education subsidies on human capital, capital market failures related to higher education financing, and the limitations of the positive selection hypothesis in explaining higher education outcomes.
How does higher education contribute to economic inequality?
The paper argues that while educational expansion offers many benefits, it also contributes to increasing economic inequality by creating a significant disparity in economic status between college graduates and those with lower educational attainment. The focus on the benefits of a skilled workforce and high earnings of graduates often overshadows this broader societal impact.
What are the consequences of upfront fees and student loan programs?
The paper examines the challenges of financing higher education, particularly the consequences of government-assisted student loan programs. Issues discussed include loan eligibility criteria based on family income (neglecting individual circumstances), increased loan default rates, and the devastating effects of high debt levels on household formation, retirement savings, and overall economic growth.
What is the impact of student loan debt?
The substantial negative economic and social consequences of rising student loan debt are explored, particularly in the United States and Australia. High debt levels are shown to have a devastating effect on household formation, retirement savings, and overall economic growth, with high default rates impacting various age groups.
How does higher education affect human capital?
The paper analyzes the negative consequences of higher education subsidies on human capital. While subsidies increase enrollment, they can also lead to grade inflation and potentially lower the overall quality of graduates due to an increase in less motivated and less academically-able students. The "enrollment effect," "composition effect," and "disincentive effect" are discussed, arguing that these can result in a net loss of human capital.
What is the positive selection hypothesis, and how does the paper challenge it?
The paper challenges the positive selection hypothesis, a commonly held belief that higher education benefits only the most capable individuals. It argues that this hypothesis overlooks the broader societal impact of higher education policies and the negative consequences for less advantaged individuals.
What are the key takeaways from the chapter summaries?
The chapter summaries provide a concise overview of the arguments presented in each section, highlighting the critical analysis of conventional assumptions about the positive impacts of higher education and emphasizing the often-overlooked negative consequences.
What are the keywords associated with this paper?
Keywords include higher education, economic inequality, student loan debt, human capital, grade inflation, tuition subsidies, positive selection hypothesis, economic development, capital market failures, household formation, and retirement security.
- Citar trabajo
- Caroline Mutuku (Autor), 2018, Negative Economic Aspects of Higher Education, Múnich, GRIN Verlag, https://www.grin.com/document/432505
