Economics and Education
It has been argued that high rates of education are essential for countries to be able to achieve high levels of economic growth. Empirical analyses tend to support the theoretical prediction that poor countries should grow faster than rich countries because they can adopt cutting edge technologies already tried and tested by rich countries. However, technology transfer requires knowledgeable managers and engineers who are able to operate new machines or production practices borrowed from the leader in order to close the gap through imitation. Therefore, a country's ability to learn from the leader is a function of its stock of "human capital". Recent study of the determinants of aggregate economic growth have stressed the importance of fundamental economic institutions and the role of cognitive skills.
At the individual level, there is a large literature, generally related back to the work of Jacob Mincer, on how earnings are related to the schooling and other human capital of the individual. This work has motivated a large number of studies, but is also controversial. The chief controversies revolve around how to interpret the impact of schooling.
Economists Samuel Bowles and Herbert Gintis famously argued in 1976 that there was a fundamental conflict in American schooling between the egalitarian goal of democratic participation and the inequalities implied by the continued profitability of capitalist production on the other.
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Famous quotes containing the words economics and, economics and/or education:
“Religion and art spring from the same root and are close kin. Economics and art are strangers.”
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“There is no such thing as a free lunch.”
—Anonymous.
An axiom from economics popular in the 1960s, the words have no known source, though have been dated to the 1840s, when they were used in saloons where snacks were offered to customers. Ascribed to an Italian immigrant outside Grand Central Station, New York, in Alistair Cooke’s America (epilogue, 1973)
“The experience of the race shows that we get our most important education not through books but through our work. We are developed by our daily task, or else demoralized by it, as by nothing else.”
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