A theory of degrees in education

Degrees are presumably the most important institution in education markets. However, despite their high relevance, degrees and their design features remain poorly understood within the economics of education. This study addresses this gap. We provide an accurate formal definition of what constitutes a degree and formulate the first theory of degree design. This theory is based on a technological platform view that interprets degrees as modules within a hierarchical structure resembling that of software architectures. This approach provides new opportunities to address questions of degree optimization. Furthermore, a novel strategy to optimize the design of school degrees is proposed. This strategy is expected to improve the learning environment of weaker students across all school types, leaving higher-performing students rather unaffected. The implications and limitations of our approach are also discussed.