Urban Education: The benefits of urban education, the argument for decentralization, and the impact on the local economy

Urban Education: The benefits of urban education, the argument for decentralization, and the impact on the local economy


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Executive Summary

Urban Education: The benefits of urban education, the argument for decentralization, and the impact on the local economy

Summary

Through the use of city and county based data this "Urban Education" report provides detailed analysis to help the reader understand current and future educational matters likely to affect both developed and developing urban markets.

Urban students typically gain greater overall access to education, receive a higher quality education, and outperform their rural counterparts. There is evidence to support this from both developed and developing countries and overall, increased urbanization will give an ever growing majority access to higher quality education. However, there are other significant barriers to education in the developing world, notably the cost. Additionally, the creation of large informal settlements makes the provision of education difficult and can increase inequality within schools.

Urbanization may create a stronger argument for increased decentralization of education. As urban areas continue to grow they will increasingly need individualized, adapted educational systems. Cities will have a better understanding of what is needed locally to ensure the best results.

Education greatly benefits a city; evidence from the United States shows further education attainment has a number of positive impacts on the local economy including a fall in unemployment and increased GDP per capita. Urban areas with a higher share of the population holding a degree are likely to prosper in the future as well as implement measures to ensure that future growth is sustainable.

Scope

Urban students commonly receive a better education than their rural counterparts due to factors such as better resources. As urbanization continues the gap between rural and urban education is expected to widen.

Urbanization in the developing world will make the provision of education difficult due to rising demand for urban school places and the surging number of people living in informal settlements. By 2050, as many as two billion people are expected to live in slums in the developing world.

Evidence from both the developed and developing world suggests decentralization of education produces benefits. As the urban population rises, a larger share of students will be impacted by decentralization and improving the quality of education will be one of the main contributing factors for achieving long term economic growth.

Analysis of 360 US cities shows a positive correlation between further education attainment and a number of beneficial economic factors including service sector employment and GDP per capita.

Reasons to buy

Urbanization is a fast occurring trend which is changing the world in a number of ways and understanding the impact urbanization is having will be essential to identify future opportunities.

Education is a salient contributor to an economy's long term development and influences a number of important factors. This report provides a detailed understanding of the impact education has on urban areas and what urbanization means for education in the future, giving the reader sufficient information to make effective business decisions.



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Table of Contents

Table of contents 3

List of exhibits 4

Executive summary 5

Section 1: Rural versus urban education 6

Section 1, Urban students commonly receive a better education than their rural counterparts 7

Section 1, Urbanization can increase access to education: Developed countries 8

Section 1, Urbanization can increase access to education: Developing countries 9

Section 2: Urbanization and decentralization of education 10

Section 3: Impact on the local economy 12

Section 3, Further education benefits an economy substantially 13

Section 3, Example: United States 14

Section 4: Key findings and Recommendations 17

Appendix 20

Acronyms and definitions 24

About the author 25

Contact information 26

List of Figures

Exhibit 1: Tertiary education attainment: Country level versus capital city 2015 7

EXHIBIT 2: OECD countries: GDP growth and tertiary education income growth, 2000-2010 13

EXHIBIT 3: Mean household income (US$) versus further education attainment (%) 2016 14

EXHIBIT 4: Financial Intermediation & Real Estate (% of GVA) versus further education attainment (%) 2016 14

EXHIBIT 5: Services (% of total employment) versus further education attainment (%) 2016 15

EXHIBIT 6: Agriculture (% of total employment) versus further education attainment (%) 2016 15

EXHIBIT 7: Unemployment Rate (%) versus further education attainment (%) 2016 16

EXHIBIT 8: GDP per capita (PPP) versus further education attainment (%) 2016 16

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