Globalization and the attitudes toward higher education: a policy discussion

Abstract

We study how attitudes toward higher education may affect labor market outcomes in the context of globalization. In particular, we find that different educational attitudes are responsible for differences in the wage differential among countries, specifically, an economy that is less willing to invest in education will display a lower wage differential but will lose in terms of welfare. From a policy perspective, we show that the negative effects on welfare due to this disinclination to study can be offset by increased labor market flexibility. All things considered, policy makers ought to keep in mind that both a positive attitude toward higher education and labor market flexibility can lead to improved overall performance in this increasingly globalized world.