EDUCATION AND ECONOMY

 Education and economy have symbiotic relation.

 Kind of demand in economy represented in the economy vice versa.
 Education helps develop modern attitude. Economic change leads to social hence to accommodate
change education necessary.
 Education develops scientific temper, decision making, planning.
 Education Enhances social mobility: from rural to urban mobility. (Verticle, horizontal, inter, intra)
 Giving capacity to take risk.
 Involving in education brings knowledge about the eco system.
 Removes taboo.
 Develops science and technology.
 Education and economy adds up to betterment of the system.
 Quantitative and qualitative enhancements happening.
 Awareness leading to qualitative growth.
 Education- employment- production- salary- savings- investment- growth in the economy.

Schooling- Expected to cognitive development, behavioral development, adjusting in the society.

This will help community to function.
 Content in textbook to make a society that nation wants or society wants.
 Has bearing on size of population and kind of the population and their betterment, as it is a primary
unit that gives skills.
 Investment in schools: Can be individualistic or societal. End of the day it benefits both the units.
Money investing in the schools has a bearing on the societies well being.
 Education leads to prosperity. Investment can be obvious or contentious. It is contentious, as
education is made compulsory. Investment in the system – force child to be in class. May have other
preferences. Should there be a flexible system.
 Factors other than education leads to economic betterment.
 Gap between schooling and job sphere exists. One might perform better in school but not in job
sphere. Schools not giving skills sufficing in job sphere.
 Not only school system but other factors like home background, experience play a role.
 Link between education and economy: Adam Smith: Marshall: how investment in education leads to
wealth of nation. Looked into returns of investment.
 Even in daily life returns are seen. Example: boy in private school, girl in government school - from
same family: why? Because returns from educating the boy. Girl will go to other house.
 Education returns not necessarily economic but cultural, social, political returns present.
 Education does not guarantee absolute economic returns. It increases the probability.
 Education should not be seen as a commodity.
 Education as a sphere needs to be looked into from different perspective social, economic, political,
philosophical etc.
 Education certification helps in screening.
 Bourdieu on capital: Ones cultural capital can help one to grow and become a hindrance. It is
possibility that adapting a habit may lead to better individual capacity but ones cultural capital is
stopping it.
 If everything is looked in economic terms then this sharp division of child labor comes in.
 Statistics can be misleading.
 If 100 students are attending school cannot classify rest of the population as involved in child labor.
 Necessary to define what is child labor.

THEORY OF HUMAN CAPITAL

 18th century shift: human beings defined as capital.
 More population more people to work. Questionable?
 Human beings at individual level make cost benefit analysis when they invest in education.
 Investment in human capital – developing skills – enables people to develop human capital.
 It is less tangible, not measurable- a combination of factors work together in development of human
capital.
 Informal versus formal certification – how does it talk of Human capital?
 Returns to human capital necessary aspect.
 Policies developed on the basis of human capital needed in future.
 Stress is to survive in the new economy suitable skills to be learnt – how schools training Human
capital.
 Can human being and skills be separated?
 2 schools developed: One separates both other sees it as one.
 Certain level of population required for functioning the economy. Example of Canada immigration.

Criticism: Economist do-not capture human decisions based on behavioral aspects and emotions
 Education contributes in differences in pay scale. Depending on grade of education- BA, MA, M.PHIL,
PHD etc.
 It is not looking at returns in long term. Breaks it into short-term returns. In education it is not short-
term returns.
 No enough data to test the relation between education and returns at long term.
 Additional factors leading to returns not considered like social, cultural factors etc.
 Individual abilities, intelligence not considered as a factor of returns, investment seen as a major
factors.
 Humanistic angle missing.