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What are the advantages and disadvantages of Cost Benefit Analysis Approach to Educational Planning?

What are the advantages and disadvantages of Cost Benefit Analysis Approach to Educational Planning

Answers

Raphael
Advantages:
i. Provide convincing grounds where beneficiaries of education system should keep in financing education.
ii. It favors the allocation of resources to level of education with highest return.
iii. May suggest ways of increasing profitability of education.
iv. Provides a conceptual framework for examining the cost in relation to relative earning of labor.
v. Provide information about economic consequences of alternative education policies.
vi. Provide a planner with vital information about links between education and labor market
vii. It is possible to measure quality of the increase in productivity of an educated consumer.
viii. Shows direction in which education system is expanding so as to maximize the earning capacity of the products.

Disadvantages
i. Education does not make workers more productivity but simply acts as a filter or screening device that enable
employees to identify those with superior neutrality and ability.
ii. Earning differentials reflects differences in natural ability, motivation, social background, sex occupation etc.
iii. Private rate of return are meaningless as individual do not make educational choices as though they are making
purely financial decision.
iv. Rate of return analysis assumes full employment levels of workers in the economy whereas many developing
countries are experiencing unemployment of graduates.
v. It is difficult to measure benefits accruing from investment in education especially spillover benefits and indirect
benefits.
vi. It’s wrong assumption to say that salaries reflect productivity.
vii. The earning of workers are more influenced by economic variable than productivity consideration
raphael answered the question on August 4, 2021 at 06:10

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