Many discussions of education reform make reference to Baumol’s Cost Disease, an economic theory which seeks to explain why costs rise in industries, like health care and education, which are resistant to efficiency gains. Essentially it argues that costs will rise rapidly in sectors that are labor intensive because wages must rise to attract workers in a competitive labor market, but the labor intensive nature of the enterprise keeps productivity from keeping up with gains in other sectors that are more amenable to automation.…

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