Input-output models , Microeconomics

Input-Output Models

Input-output models are used in economics of education in studies of cost-quality and education-labour-earnings relationships. Different levels and forms of education have different time spans, costs, resource needs and gestation periods for employment. They also lead to different types of employment opportunities for similar educational programmes and for different types of education. Levels and forms of education with comparable inputs may lead to different earning streams. For example, a matriculate, an intermediate, a diploma holder of three years from polytechnic in any engineering discipline, one with 3 years industrial training, and a general graduate would each be served with diverse job opportunities and life-time earnings. Which courses lead to which types of job and how much life-time earnings, reflects the efficiency and economic value of educational courses.

Quality of outputs of education is determined partly by the quality of inputs. In a sense, it is in keeping with the English proverb: “as you sow, so you reap”. Quality has a cost. Similar inputs of different quality have differing costs. For instance, an elementary school teacher has to be paid differently if the qualifications/quality of the teacher differs. A 12 + diploma holder with teacher training differs from a graduate or a post-graduate with teacher training who opts to teach at elementary level. While government/State supported schools recruit 12+ graduates (with teacher training), the self-financing urban (private unaided) schools recruit post-graduates to teach at the elementary level. Quality of work and quality of output thus varies with the costs. How to raise quality while minimising or rather optimising cost of education is an important area of work in input-output analysis.


There have been a number of studies in education which have used ‘Systems Analysis’ approach for examining the relationships between input-output variables and the way the inputs get processed as outputs and emerge as outcomes. Some of these works are cited under ‘some useful books’ at the end. The systems approach to education is criticised by Kenneth Arrow, a Nobel Laureate well known for his theory of social choice. Famous for his “Screening Hypothesis”, Arrow asserted that education acts as a ‘signal’ or a ‘filter’ and does not lead to earnings. A person’s opportunities for employment and earnings get influenced by the person’s gender, contacts, experience, intelligence and competence, emotional maturity, language proficiency, rural-urban background, etc. Thus, qualifications can be only one of the variables. This criticism is applicable both to input-output studies as well as cost-benefit studies.


 

Posted Date: 12/17/2012 6:08:13 AM | Location : United States







Related Discussions:- Input-output models , Assignment Help, Ask Question on Input-output models , Get Answer, Expert's Help, Input-output models Discussions

Write discussion on Input-output models
Your posts are moderated
Related Questions
China had to convert its yuan into dollars. Does that cause the dollar to appreciate or depreciate?

Marginal Product (MP) of a Factor: From the above mentioned production function, immediately we can study the effect on total output when there is a variation in labour utlili

Q. Perfect Competition in neoclassical economics? Perfect Competition: An abstract assumption, central to neoclassical economics, in that companies are so small that none can i

Consider the model of corruption explored by Shleifer and Vishni's where there is one government-produced good X. There is a demand for that good described by the inverse demand eq

Problem: i) The  inverse market demand curve for a Stackelberg leader and follower is given by  P = 10  - Q. If each has  a marginal cost of $4, what will be the equilibrium qu

the demand and supply functions for goods are given by demand:Pd=50-3Qds and supply:Ps=14=1.5Qs. where p is the price of a pair of jeans, Q is the number of pairs of jeans a) calc


income generation in a static and dynamic setting

STRUCTURE OF NATIONAL INCOME: The structure or composition of national income of an economy explains the relative significance of the different producing sectors in an economy

What is the difference between a change in demand and a change the quantity demanded?  There is a distinction among demand and quantity demanded. Demand explains the behavior o