The Influence of Education on Preference : A Natural Experiment by the School Grouping Policy

We reveal the effect of education on academic performance and preferences by analyzing a special selection system for high school entrance examinations in Japan, the “school grouping policy.” Owing to the random assignment of students, the difference in performance between the schools in a group was due to their educational features. Education affected both academic performance and hometown loyalty, and the instruction on how to choose a college to apply to strongly influenced students’ choices. While there is significant selection bias in most empirical studies, our findings are free from such bias and are important when considering educational policies

日本における教育補助政策の経済成長･人的資本蓄積に与える影響

This paper investigates the effects of an education subsidy financed by a wage tax on human capital accumulation, or a growth rate of Japan’s economy, by a dynamic macroeconomic simulation analysis based on a two-period overlapping generations model. In this model, human capital is accumulated by an education investment for children financed by their parents. The main objective of this paper is to obtain the short-and the long-run effects of the changes in the education subsidy on the economics growth rate and the social welfare numerically. This paper proves that their effects cannot be negligible and indicate that an ”optimal education subsidy rate” is 80%, which is 10% higher than that in present Japan