The Political Economy of Education

Chapter 1 is the first of three chapters that introduce the book. It presents the main concepts used and makes the case for a political economy approach to studying education – one that combines economics of education with political theory. The chapter argues that typical economics of education analyses provide powerful tools to study education, but have analytical shortcomings – they generally assume that markets are competitve, that all economic actors are politically equal, and that, given similar information, they would make similar economic choices, no matter their position in the social structure. The chapter suggests that a political economy approach provides a deeper discussion of market imperfections and economic/political power – including how power relations influence individual choice and condition the identification and treatment of market imperfections – to more fully understand education as an institution and its role in society. The chapter ends by providing three examples of important policy issues in education that such an approach would be likely to address: the relationship between education and economic growth; gender discrimination in labor markets; and teacher shortages.