Globalization and the attitudes toward higher education: A policy discussion

We study how attitudes toward higher education may affect labor market outcomes in the context of
globalization. In particular, we find that different educational attitudes are responsible for differences in
the wage differential among countries, specifically, an economy that is less willing to invest in education
will display a lower wage differential but will lose in terms of welfare. From a policy perspective, we show
that the negative effects on welfare due to this disinclination to study can be offset by increased labor
market flexibility. All things considered, policy makers ought to keep in mind that both a positive attitude
toward higher education and labor market flexibility can lead to improved overall performance in this
increasingly globalized world.