On the Monetary Value of Education's Intergeneration Effects

The influence of education in one generation on attitudes and educational attainments in the next generation has been long discussed. This paper presents an empirical method for placing a monetary value on these intergeneration effects. The data presented are essentially illustrative of a general approach. Estimates will be presented of internal rates of return in one generation from educational investment in the preceding generation. Rates of return will be estimated from a "social" point of view-costs including actual education expenditures per student and also earnings foregone-and from a narrower point of view which considers only actual money expenditures.