Education Not for Money: An Economic Analysis on Education, Civic Engagement and Life Satisfaction

Abstract

Many recent theoretical and empirical findings both in Economics and in Psychology show that, in addition to the effects on policy outcomes, political participation may affect individual utility and increase happiness and well-being. In this paper we devise a theoretical model where the individual utility grows through the civic engagement, which may be enjoyed only with a sufficient level of investment in civic capital accumulated through education. We show that investing in education may have important consequences for subjective well-being by enhancing civic capacities which are relevant to improve individual’s civic engagement and social outcomes, even without any monetary effects. More specifically, we identify a form of non pecuniary benefits of education represented by the possibility of taking an active and successful part in social and civic life which significantly contribute to life satisfaction.