Economics of education in Serbia: Between human capital and signaling and screening theories

Abstract

This article analyzes education in Serbia from the point of view of the two principal strands of economic theory of education: human capital theory and the theory of signaling and screening. Based on the available statistical data from the Statistical Office, the rate of return to education is calculated for Serbia and its implications discussed. From another point of view, the comparative employment opportunities of graduates from public and private universities are discussed based on the signaling and screening theory. Since no university specific employment statistics exist at present in Serbia, only a hypothetical theoretical discussion is provided as a basis for future research. Finally, the prospects for development of education in Serbia are analyzed.

Keywords

• education economics
• human capital
• signaling and screening