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Foundational course: Economics of Education

By Prof. Shyamsundar Bairagya   |   Visva-Bharati University
Learners enrolled: 809   |  Exam registration: 92
ABOUT THE COURSE:

Economics of Education became a sub-discipline of economics with the proliferation of publications and empirical research during the 1950s and 1960s. However, the momentum gained during those years gradually fizzled out in sharp contrast to other areas in economics, like the economics of health, which has now occupied a place in the basket of elective courses in many universities. Mark Blaug, who played a stellar role in shaping this sub-discipline during the early years, lamented the premature demise of the economics of Education. However, with Nobel prizes in economics awarded to Theodore Shultz and Gary Becker for their contributions in the realm of Education and human capital, and significant contributions from other Nobel laureates like Milton Friedman, Joseph Stiglitz, and Amartya Sen, the growth of the economics of Education as a field of study has never really stagnated. There has been an advancement in research in labour economics and growth theory in particular. At the same time, there is an increasing realization based on empirical studies that the generation and dissemination of knowledge have become prime movers of growth and that Education should play a larger role in the discourse on development theory. However, the economics of Education as a unified course weaving various pertinent areas together, where Education features prominently at the micro and macro level, has not been able to carve out space for itself in graduates in Economics.

INTENDED AUDIENCE: PG/ Ph.D. Students from Humanities and Social Sciences

PREREQUISITES: Any UG Course

INDUSTRY SUPPORT: UGC, NCTE
Summary
Course Status : Ongoing
Course Type : Core
Language for course content : English
Duration : 12 weeks
Category :
  • Economics & Social Sciences
  • Faculty Domain - Advanced
Credit Points : 3
Level : Postgraduate
Start Date : 19 Jan 2026
End Date : 10 Apr 2026
Enrollment Ends : 02 Feb 2026
Exam Registration Ends : 20 Feb 2026
Exam Date : 19 Apr 2026 IST
NCrF Level   : 4.5 — 8.0

Note: This exam date is subject to change based on seat availability. You can check final exam date on your hall ticket.


Page Visits



Course layout

Week 1:  Introduction to Economics of Education
History, Scope, and Importance
Education as Consumption vs. Investment

Week 2: Human Capital Theory (Gary Becker, Mincer)
Human vs. Physical Capital
Process and Sources of Human Capital Formation

Week 3: Endogenous Growth Theory (Lucas, Romer)
Linkage with Human Capital
Amartya Sen: Capability Approach & Education

Week 4: Alternative Theories: Signaling (Spence),
Screening Hypothesis Critiques of Human Capital Theory
Education and Labor Market Outcomes

Week 5: Educational Production Function
Inputs, Outputs, and Learning Outcomes
Technical and Allocative Efficiency

Week 6: Internal and External Efficiency
Total Factor Productivity in Education
Role of Institutions in Efficiency

Week 7: Cost of Education: Concepts (Opportunity, Unit, Sunk, Incremental)
Determinants of Educational Costs
Link with Productivity

Week 8: Cost-Benefit and Cost-Effectiveness Analysis
Rate of Return to Education
Application to Policy Decisions

Week 9: Education as Public, Private, Merit, and Mixed Goods
Externalities in School and Higher Education Winston’s "Awkward Economics of Higher Education"

Week 10: Artha Shastra (Kautilya, 4th century BCE)
Advocates state support for education, agriculture, and skill-training.
Stresses economic administration, taxation for welfare, and the role of knowledge in state prosperity.
Shows how education was linked to governance and economic stability.

Week 11: Educational Finance: History, Principles, Sources
Public vs. Private Funding
Educational Loans, PPPs, Income-contingent loans, Fees

Week 12: NEP 2020: HEQF, ABC, NCRF – Implications for Economics of Education
Equity, Access, and Efficiency Revisited: Future Directions and Emerging Debates

Books and references

1.Chattopadhyay S. (2012): Education and Economics Disciplinary Evolution and Policy Discourse. New Delhi, Oxford University Press.
2.Ansari M, A, (1987): Education and Economic Development. New Delhi, AIU Publication. Page 30 of 37
3.Blaug Mark. (1987). Economics of Education & the Education of an Economist. New York: University Press. Blaug Mark. (1980). An Introduction to Economics of Education. England: Penguin Books Ltd.
4.Kneller, G. F. (1968). Education & Economic Growth. New York:
5.Pandit, H. N. (1969). Measurement of Cost Productivity & Efficiency of Education. New Delhi: NCERT.
6.Schultz. T. W. (1963). The Economic Value of Education. Columbia: Columbia University Press.
7.Sethi, Vinita (1997). Educational Development and Resource Mobilization. New Delhi: Kanishka Publication.
8.Gary Becker (1993). Human Capital: A Theoretical and Empirical Analysis. University of Chicago Press.
9.Jacob Mincer (1974). Schooling, Experience, and Earnings. NBER.
10.Amartya Sen (1999). Development as Freedom. Oxford University Press.
11.Michael Spence (1973). Job Market Signaling, Quarterly Journal of Economics.
12.Winston, Gordon C. (1999). The Awkward Economics of Higher Education, Journal of Economic Perspectives, 13(1), 7–24.
13.Psacharopoulos, G.& Patrinos, H. (2004). Returns to Investment in Education: A Further Update, World Bank.
14.Johnes, G. & Johnes, J. (Eds.). (2004). International Handbook on the Economics of Education. Edward Elgar.
15.Woodhall, M. (2004). Cost-Benefit Analysis in Educational Planning. UNESCO: IIEP.
16.Tilak, J.B.G. (2008). Economics of Education in India. Sage.
17.World Bank Reports, OECD publications on education finance and equity.

Instructor bio

Prof. Shyamsundar Bairagya

Visva-Bharati University
Prof. Shyamsundar Bairagya, Tripple M.A. (in Economics from Visva Bharati, Education from Kalyani University, and Environmental Studies from Rabindra Bharati University), PGDCSA from Visva Bharati, B.Ed., and PhD in Education from Kalyani University, Kalyani. He Stood First Class First in Economics in the M.A. Examination at the University of Visva-Bharati. Dr Bairagya joined as a Lecturer at the Department of Education at Kalyani University in 2002. He joined as a Reader in an open post at the Department of Education, University of Gour Banga, Malda in 2009, and subsequently, in due course of time, he joined as an Associate Professor and Professor in an open post in the Department of Education, University of Gour Banga, Malda in 2012 and 2014. He discharged the service as Head of Education at the University of Gour Banga, Malda. He was assigned the charge of Registrar (A/C) and Officiating Vice Chancellor of the University of Gour Banga, Malda. He is now an Associate Professor at the Department of Education, Vinaya Bhavana, Visva Bharati. He supervised 18 PhD scholars, attended 90 seminars at the national and international levels, and published 90 papers in reputed journals, ten books, and sixteen book chapters in different publishers. His thrust teaching areas are Research Methodology, Educational Technology, Economics of Education, and Environmental Education. He was an advisor for the B.Ed. and M.Ed. two-year Curriculum Framework in 2014 under the Govt of West Bengal. His notable works include studies on mobile phone addiction and academic achievement, animated cartoons in language learning, and geographical influences on Education. A scholar deeply engaged in fostering educational innovation, his research underpins his commitment to improving learning outcomes across diverse educational contexts.

Course certificate

The course is free to enroll and learn from. But if you want a certificate, you have to register and write the proctored exam conducted by us in person at any of the designated exam centres.
The exam is optional for a fee of Rs 1000/- (Rupees one thousand only).
Date and Time of Exams: April 19, 2026 Morning session 9am to 12 noon; Afternoon Session 2pm to 5pm.
Registration url: Announcements will be made when the registration form is open for registrations.
The online registration form has to be filled and the certification exam fee needs to be paid. More details will be made available when the exam registration form is published. If there are any changes, it will be mentioned then.
Please check the form for more details on the cities where the exams will be held, the conditions you agree to when you fill the form etc.

CRITERIA TO GET A CERTIFICATE

Average assignment score = 25% of average of best 8 assignments out of the total 12 assignments given in the course.
Exam score = 75% of the proctored certification exam score out of 100

Final score = Average assignment score + Exam score

Please note that assignments encompass all types (including quizzes, programming tasks, and essay submissions) available in the specific week.

YOU WILL BE ELIGIBLE FOR A CERTIFICATE ONLY IF AVERAGE ASSIGNMENT SCORE >=10/25 AND EXAM SCORE >= 30/75. If one of the 2 criteria is not met, you will not get the certificate even if the Final score >= 40/100.

Certificate will have your name, photograph and the score in the final exam with the breakup.It will have the logos of NPTEL and IIT Kharagpur .It will be e-verifiable at nptel.ac.in/noc.

Only the e-certificate will be made available. Hard copies will not be dispatched.

Once again, thanks for your interest in our online courses and certification. Happy learning.

- NPTEL team
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