2. Household demand for years of schooling Perceived private rates of return per level Income Improves with productivity and qualifications Learning outcomesQualifications Productivity Screening/ signalling Positive externalities Economic growth and social development Direct costs Indirect costs/ opportunity costs Public spending Measures to combat external information asymmetries Enforced investment through compulsory schooling Quality hurdles (prevention of poor investment) EDUCATION SYSTEM Household investment in schooling Internal efficiency improvements (accountability, incentives, disincentives) The human capital model and the role of education policies EDUCATION IN THE HOME PRIMARYSECONDARYTERTIARY/POST-SCHOOL  Low unit cost, high public needHigh unit cost, lower public need  Price management Dealing with teacher monopsony/monopoly. Report cards and qualifications. At secondary and especially tertiary levels. At school level but centrally managed. Publishing labour market information. Perceived income benefits.

3. Household demand for years of schooling Perceived private rates of return per level Income Improves with productivity and qualifications Learning outcomesQualifications Productivity Screening/ signalling Positive externalities Economic growth and social development Direct costs Indirect costs/ opportunity costs Public spending Measures to combat external information asymmetries Enforced investment through compulsory schooling Quality hurdles (prevention of poor investment) EDUCATION SYSTEM Household investment in schooling Internal efficiency improvements (accountability, incentives, disincentives) The human capital model and the role of education policies EDUCATION IN THE HOME PRIMARYSECONDARYTERTIARY/POST-SCHOOL  Low unit cost, high public needHigh unit cost, lower public need  Price management Dealing with teacher monopsony/monopoly. Report cards and qualifications. At secondary and especially tertiary levels. At school level but centrally managed. Publishing labour market information. Perceived income benefits.