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Cited by 963Labor market dynamics and wage inequalitySchool Choice and PerformanceIntergenerational and Educational Inequality Studies

Priceless: The Nonpecuniary Benefits of Schooling

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Oreopoulos, Philip, Salvanes, Kjell G·2011·Journal of Economic Perspectives
DOI 10.1257/jep.25.1.159
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Abstract

Increasing wealth provides key motivation for students to forgo earnings and struggle through exams. But, as we argue in this paper, schooling generates many experiences and affects many dimensions of skill that, in turn, affect central aspects of individuals' lives. Schooling not only affects income, but also the degree to which one enjoys work, as well as one's likelihood of being unemployed. It leads individuals to make better decisions about health, marriage, and parenting. It also improves patience, making individuals more goal-oriented and less likely to engage in risky behavior. Schooling improves trust and social interaction, and may offer substantial consumption value to some students. We discuss various mechanisms to explain how these relationships may occur independent of wealth effects and present evidence that nonpecuniary returns to schooling are at least as large as pecuniary ones. Ironically, one explanation why some early school leavers miss out on these high returns is that they lack the very same decision-making skills that more schooling would help improve.

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Crossref · 10.1257/jep.25.1.159

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4 of 4 references verified0 citation errors · 0 not checkable

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  • A college education generates benefits to society above and beyond those captured by students themselves.

    “That is, a college education generates benefits to society above and beyond those captured by students themselves.”

    From College Costs, Financial Aid, and Student Decisions (2022) · cites this paper as Oreopoulos & Salvanes, 2011

  • There are positive externalities to education.

    “Economic theory predicts, and quantitative evidence shows, that there are positive externalities to education.”

    From College Costs, Financial Aid, and Student Decisions (2022) · cites this paper as Oreopoulos & Salvanes, 2011

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Authors
Oreopoulos, P., & Salvanes, K. G.
Affiliations
  • Canadian Institute for Advanced Research (CA)
  • IZA - Institute of Labor Economics (DE)
ORCID
Venue
Journal of Economic Perspectives
Publisher
American Economic Association
Published
2011-02-01
Volume
25
Issue
1
Pages
159-184
ISSN
0895-3309 (ISSN-L)
DOI
10.1257/jep.25.1.159
OpenAlex
W2157522835
Cited by
963
References
4
Citations by year
2026: 42 · 2025: 78 · 2024: 55 · 2023: 65 · 2022: 83 · 2021: 98 · 2020: 85 · 2019: 72 · 2018: 63 · 2017: 70 · 2016: 64 · 2015: 56 · 2014: 53 · 2013: 37 · 2012: 25
FWCI
107.19
Type
journal article
Language
en
Open access
Licence
other-oa
Locations
  • The Journal of Economic Perspectives (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
  • BIBSYS Brage (BIBSYS (Norway)) (submittedVersion)
  • NORA - Norwegian Open Research Archives (submittedVersion, other-oa)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
  • Social Sciences › Education › School Choice and Performance
  • Social Sciences › Sociology and Political Science › Intergenerational and Educational Inequality Studies
Keywords
unemployment, health decision-making, patience, risk-taking, trust, social interaction, consumption values, early school leavers, decision-making skills

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