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Behavioral Economics of Education

Author

Listed:
  • Koch, Alexander K.

    (Aarhus University)

  • Nafziger, Julia

    (Aarhus University)

  • Nielsen, Helena Skyt

    (Aarhus University)

Abstract
During the last decade knowledge about human behavior from psychology and sociology has enhanced the field of economics of education. By now research recognizes cognitive skills (as measured by achievement tests) and soft skills (personality traits not adequately measured by achievement tests) as equally important drivers of later economic outcomes, and skills are seen as multi-dimensional rather than one-dimensional. Explicitly accounting for soft skills often implies departing from the standard economic model by integrating concepts studied in behavioral and experimental economics, such as self-control, willingness to compete, intrinsic motivation, and self-confidence. We review how approaches from behavioral economics help our understanding of the complexity of educational investments and outcomes, and we discuss what insights can be gained from such concepts in the context of education.

Suggested Citation

  • Koch, Alexander K. & Nafziger, Julia & Nielsen, Helena Skyt, 2014. "Behavioral Economics of Education," IZA Discussion Papers 8470, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8470
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    More about this item

    Keywords

    educational decision making; soft skills; behavioral economics; schooling; non-cognitive skills;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • I20 - Health, Education, and Welfare - - Education - - - General

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