Book contents
- Frontmatter
- Contents
- List of Tables
- List of Acronyms
- Preface
- PART I THE SETTING
- PART II ECONOMIC THEORIES ABOUT EDUCATION
- PART III EDUCATION POLICIES
- 4 Resources and outcomes
- 5 Productivity and efficiency
- 6 Economic policies in higher education
- 7 Preparation for work
- 8 Markets in education
- 9 Private and public education
- PART IV CONCLUSION
- References
- Index
4 - Resources and outcomes
from PART III - EDUCATION POLICIES
Published online by Cambridge University Press: 03 May 2011
- Frontmatter
- Contents
- List of Tables
- List of Acronyms
- Preface
- PART I THE SETTING
- PART II ECONOMIC THEORIES ABOUT EDUCATION
- PART III EDUCATION POLICIES
- 4 Resources and outcomes
- 5 Productivity and efficiency
- 6 Economic policies in higher education
- 7 Preparation for work
- 8 Markets in education
- 9 Private and public education
- PART IV CONCLUSION
- References
- Index
Summary
Human capital theory and broad generalities about market reform are of little use in the day-to-day provision of education. A more promising economic theory is input–output modelling, which looks at the relationship between the resources devoted to education and the outcomes of education. It is unfortunate that some economists have made strenuous efforts to deny that there is a positive relationship between resources and educational outcomes. This chapter looks at the relationship between resources and outcomes (particularly in relation to class sizes), and examines trends in Australian spending on education.
THE PROBLEM OF RESOURCES
THE FALL IN EDUCATION SPENDING AS A PROPORTION OF GDP
In Australia there is a widening gap between the need for education and the resources to spend on it. The education system is growing rapidly. There is a consensus about this growth. But the finance to pay for it properly is not being provided.
This is a long-term problem which is now becoming worse. As chapter 1 described, post-compulsory schooling and tertiary education have expanded rapidly since the early 1980s. But public expenditure on education fell from 5.4 per cent of GDP in 1980–81 to 4.8 per cent in 1989–90. This represents the loss of about $2.6 billion (or 13 per cent) in 1989–90 price terms. Australian private expenditure on education as a proportion of GDP has always been relatively low by international standards, and cannot compensate for a major decline in government commitment.
- Type
- Chapter
- Information
- Education and Public Policy in Australia , pp. 83 - 101Publisher: Cambridge University PressPrint publication year: 1993