An investigation to determine the rates of return on an investment in a diploma, made by a teacher employed by the Department of Indian Affairs.
The Investigation falls within the field of study known as "economics of education". According to Blaug(l) the subject of economics of education can be divided neatly into two sections: analysis of the economic value of education and analysis of the economic aspects of educational systems. As this Investigation is concerned with determining the productivity of a particular course of study, it may be classified more precisely as belonging to the branch of economics of education dealing with the value of education. Economics of education has been referred to as a new subject with an old history. Although certain aspects of economics of education have been discussed by economists as early as the seventeenth century, it only became established as a branch of economic studies a little more than two decades ago. Two factors are generally given as reasons for its rapid development since the mid 1950's. (2) The first is the increasing recognition that has been given to the concept "human capital". Economists are beginning to accept this form of capital as being as important a component of economic growth as physical capital. The second reason for the recent rapid development of economics of education is the increasing volume of resources that have been devoted to education. These large commitments have forced economists and educational authorities to explore various methods of ensuring efficient utilisation of resources.