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Production of Education

Effectiveness

Economic analysis is foremost concerned with the effective use of resources to attain specific goals. For education, these goals are twofold. First, a high level of educational attainment in the population is desirable, e.g. the provision of a minimum education to everybody or a sufficiently high share of university graduates. Second, the education system should be effective in endowing youths with high qualitiy skills and knowledge, be it general skills such as reading and numeracy or more vocational ones.

Research in this field aims to assess and improve the effectiveness of resource allocation in the educational system. Moreover, the incentives set by the institutional system can be optimised in order to foster educational achievement. For Germany, for instance, this concerns the role of streaming in secondary education according to learning ability or the dual form of the apprenticeship system.

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