Education and Poverty.

Overview & Synopsis

This study focused on the measurement and interpretation of income gains resulting from the improved education of poor persons. Several kinds of education (job retraining, dropout prevention, compensatory education, preschool programs, increased expenditures per pupil) were examined in terms of efficiency (average cost versus average returns) in alleviating poverty. Comparable efficiency measures were devised for each variety and the resulting estimates were contrasted. These estimates were supplemented with an overall evaluation of the benefits from education. Major conclusions were: (1) vocationally oriented training, at least in the form of recent manpower training programs, shows a higher payoff rate than conventional education; (2) benefit-cost ratios do not seem to justify emphasis on early school or preschool years; (3) benefit-cost ratios appear to rise from adding expenditures to school districts that are now spending relatively little; (4) general education probably results in bigger second generation effects, greater psychological returns, and more such intangible benefits than vocational education. (author/ly)