The Economics of Education, 2nd Edition

Chapter 32

The economic role of the state in education

D.N. Plank ^a , and T.E. Davis ^{b       a} Stanford University, Stanford, CA, United States      ^b University of Maryland, Baltimore, MD, United States

Abstract

The economic and political importance of education has increased dramatically over the course of the past century. Education is the largest item of public expenditure in countries around the world, and formal schooling consumes an ever-larger quantity of young people's time. The centrality of education in modern societies is mainly a consequence of state action. The state has built and expanded national education systems, encouraged and sometimes compelled young people to attend school, and fostered rewards systems that make ...