Economics Paper on Cost and Benefits of Elite Education

Cost and Benefits of Elite Education


Access to elite education is perhaps one of the most important channels for forming social mobility in modern communities. Education is critical in bridging inequalities gap which socially affect members of society. In response to economics, there exist a lot of materials to support the assertion that elite education often offers economic returns in the long term. Today, many students are in a rush to fill elite colleges and universities application forms to meet deadlines of joining such institutions. Education is fundamental in personal growth in addition to being crucial for a country’s development. Education provides to the society individuals with requisite knowledge and skills beneficial to different sectors. Studies have divulged on how people accomplish their dreams by securing employment opportunities and helping others in the society courtesy of elite education access (Steinberg n.p). However, scholars are divided on the benefits of elite education to the society while others believe that elite education is not worth the cost because it can hinder a person’s potential. The paper aims to investigate whether elite education is worth the cost.


Is Elite education Worth the Cost?

Despite time change, improvement in technology and increased access to information many people have poked holes on the benefits of elite education to an individual and society. Many people believe that elite education is worth the cost because it ensures that students access knowledge from top professors, access broad array of books and networks of people likely to push dreams up the ladder. On the other hand, a section of people believe that elite education is not worth the cost because it may hinder actual success and potential. This anchored on belief that business world is constantly changing; top companies are constantly looking for people with talents, innovative ideas and collaborative skills. According to them, elite education does not currently offer such skills. First, those opposing elite education believe that it makes people less open to diversity. Second, they affirm that people pursuing elite education have their thinking shaped by rules rather than desires to follow their own paths. Third, elite education makes people to have fixed mind and cannot think beyond class teachings.

On the contrary, significant numbers of scholars believe that elite education is worth the cost (Hawksworth n.p).  According to research conducted, elite education can potentially make a difference in graduate goals and community outreach services (Steinberg n.p). Strong evidence has emerged to show that there is significant economic return to people accessing elite education, this fundamental contribution has increased over time. There are concrete facts to support the assertion that the cost of elite education is worth because there are broad array of benefits associated with it.

First, elite education offers more academic opportunities and vigor because the process is rigorous. This is good for the economy of a country because elite institutions produce individuals with skills and knowledge required for economic growth and development. For that matter, spending to access elite education often rewards individual, companies and the entire economy of a country in the long run. Students can access lots of education materials and thus more knowledge that can assist in shaping their beliefs, thinking and innovation. For that matter, students are able to access vital information required by business organizations to survive. That is, they acquire broad skills and knowledge that can solve daily problems and aid in decision making, which is critical for business success. Elite education offers an opportunity for a student to access virtually all education resources in libraries, study spaces and other resources. Studies have revealed that elite institutions are home to a variety of historic documents and artifacts, as well as state-of-the-art labs and research facilities (Steinberg n.p). Studies reveal that students from other elite institutions can access these materials too (Steinberg n.p). Therefore, parents and students should just spend on elite education because services and materials offered are commensurate.

Second, elite education promotes exposure and networking by connecting to prominent alumni of elite institutions. The cost of accessing these prominent people outside the confines of elite institutions may be high. However, these prominent persons can freely be accessed when they visit institutions as alumni. Compared to other levels of education, people paying high fees to access elite education are in good positions to access vital information and knowledge cheaply in the institutions. Surveys have revealed that most prominent leaders across the world accessed elite education at one time (Steinberg n.p). In light of this, prominent and successful individuals visit their former institutions to make notable speeches that encourage and shape innovative skills of students. Elite education environment also promote socialization among students widening the networking net. Socialization and networking is critical for students because they share ideas fundamental for individual growth and development.

Third, studies have revealed that students who acquire elite education secure jobs that pay well thereby improving economics of life because they access higher incomes (Hawksworth n.p). Economics of life entail access to good food, clothing and shelter that in totality improve quality of life. Economists have linked pay to productivity to enhance the economy of a given country. Economic theories also suggest that pay and productivity are interlinked because companies that pay employees more than they produce may make losses, but those that pay less may see their employees leave for other jobs or may experience reduced productivity. Notably, higher wages may encourage employees to work harder to generate more profits while a company may reduce turnover. These higher pay are only accessible for people who have gone through elite education because salary is based on education standards and skills. Education is a long term investment, and so people should not fear spending because future rewards are immense.

Fourth, elite education is capable of instilling diverse economic concepts. These institutions pride themselves on offering diverse knowledge that surpasses local ethnic and racial thinking. Studies reveal that a visit to an elite institution, one can be thrilled by heartwarming spectacle of watching children of businessmen and other professionals mingle together (Hawksworth n.p). This association and interaction cultivate business, economics, and culture and values instrumental in future entrepreneurial venture. Entrepreneurship culture is important in any country because they encourage innovation that develops the economy by providing employment opportunities and promoting buying culture. Fundamentally, entrepreneurship knowledge gained from elite education enables wealth creation, job creation, balances regional development, and improves standard of living while promoting community development.


Education is critical for any developing economy. Elite education produces individuals with requisite skills and knowledge useful to the economy by instilling entrepreneurial skills that enables job creation. Students from elite institutions access high paying jobs that empower them to improve on quality of life. Further, elite education provides diverse skills and improves networking to create more knowledge and wealth. Therefore, elite education is worth the cost because benefits surpass criticisms.




Works Cited

Steinberg Jacques. Is Going to an Elite College Worth the Cost? New York Times. New York

Times, December 17, 2010. Available to: Accessed December 4, 2017.

Hawksworth John. Pay and productivity: an economic perspective. PWC. PWC, April 01, 2014.

Available at: Accessed December 4, 2017.