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C. Educational Attainment and Other Indicators of Well-Being
There have been many studies on the benefits of education for the overall quality of life.
Education increases well-being through many channels, the most obvious being the increase in
income resulting from higher educational attainment. The development of greater human capital,
however, not only increases productivity and income, but can also reduce poverty, decrease
crime, and improve health.
The literature shows that the long term benefits from education mean it is an investment
well worth making due to the returns to society and the individual. The OECD (1998), for
example, calculated that for Canada the private rate of return to university education in 1995 was
14 per cent for men and 21 per cent for women. Similarly, in a study focusing on Canada,
Vaillancourt (1998) evaluated the rate of returns for different level of education attainment in
1985 and 1990. He found that the highest rates of return resulted from obtaining a high school
diploma. The latter finding suggests that targeting those from disadvantaged backgrounds is
likely to be the most effective strategy as they generally have a predisposition to drop out of high
school. They also have a higher probability of committing crimes, experience low lifetime wages
and have poorer health. It is also beneficial to target children because the rates of return from
such investments are higher. This follows from the fact that the early years of development often
—set the stage for learning, behaviour and health throughout the life cycle” (McCain and Mustard,
1999).
In this section, we not only focus on the direct benefits of education, but also on the
interaction between education and other indicators of well-being. First, we briefly review the
literature focusing on poverty and the possibility for disadvantaged youth to exit the cycle of
poverty if given a proper education. Then, we examine the negative relationship between
education and crime. We follow with a review of the relationship between family structure and
education. We then examine the potential positive health effects of an increase in educational
attainment. Finally, we review part of the literature on early child program and the potential they
have in increasing educational attainment and thus achieve positive outcomes both individually
and socially through the linkages reviewed in this section.
i. Poverty
Poverty is an issue with many implications for individuals and society. Childhood
poverty, in particular, is often considered most troubling both because it affects persons who
have little control over their life and because it has important long-term impact on society.
Holzer et al. (2007:13) estimates that, in the United States, growing up in poverty reduces the
national aggregate output (GDP) by 1.3 per cent or approximately $170 billion per year. It is
further estimated that the total social cost to the United States associated with childhood poverty
totals approximately $500 billion a year, which is around four per cent of GDP (Holzer et al.,
2007:22). Persons from poor upbringing are more likely to be teen parents, engage in crime, have
poorer health, and be unemployed in adulthood. Targeting disadvantaged youth through better
educational opportunities, therefore, has the potential to reduce many of the negative
externalities associated with a disadvantaged background.