Question

write a note work education in view of economic​

Answer 1

• The importance of knowledge and learning has been recognized since the beginning of time. Plato wrote: “If a man neglects education, he walks lame to the end of his life.”

• But it was really the Nobel winning economists that put the argument of education as investment. T.W. Schultz argued that investment in education explains growth and Gary Becker gave us the Human Capital Theory.

• In a nutshell, the Human Capital Theory posits that investing in education has a payoff in terms of higher wages. Moreover, the theory and empirical estimates are backed up by current science, as explained by James Heckman.

• Neurogenesis tells us that learning can continue into advanced ages. The relative costs and benefits to investments in older persons compared to younger persons differs. Investments in more able workers at any age generate higher returns than investments in less able workers, and ability is formed at early ages.

Education pays

Overall, another year of schooling raises earnings by 10 percent a year. This is typically more than any other investment an individual could make:

The value of human capital – the share of human capital in total wealth – is 62 percent. That’s four times the value of produced capital and 15 times the value of natural capital. Globally, we – governments, private sector, families, individuals – spend more than $5.6 trillion a year on education and training. Countries spend 5 percent of GDP on education or 20 percent of their national budget. Education employs about five percent of the labor force.