This research brief from Save Our Schools reviews the statement in support of the Nobel Prize for Economics for 2021 by the Prize Committee. The statement highlights the extensive empirical evidence that increased expenditure on education can improve test scores and future earnings, especially for disadvantaged students.

It represents a new consensus that has developed in recent years on this issue. In awarding the Nobel Prize jointly to David Card, Professor of Economics at the University of California, Berkley, the Prize Committee said: “There is now relatively strong empirical support to show that investments in education influence students’ later success on the labour market. This effect is particularly strong for students from disadvantaged backgrounds.”