The Assessment: Education

Research on the economics of education increasingly influencesthe design of education policy. The framework for the analysisis provided by human capital theory, in which education is interpretedas an investment, raising the future productivity of the individualand bringing other private and social benefits. Estimates ofthe private and social returns to education, and of the effectivenessof schools and teachers, can be used to guide the allocationof resources within the public sector; in addition, policy reformsin the UK have attempted to make public providers of educationmore responsive to the preferences of parents and students.There is evidence that pupil attainment has risen in recentyears, but that the education system fails to provide equalityof access or opportunity and may reinforce social and economicinequality.