EDUCATION AND ECONOMICS

- (For economists, there are two theories that explain education and economics
First is the human capital theory, and the other is the signaling theory. )

1.Human capital theory (G. Becker, 1975) - explains that individuals acquire more skills, as when
receiving a higher education means income differentials as (in part at least) a return to human capital,
eg, the correlation between the number of years of formal education and earning is explained .

- (Dito is sinasabi lang na through education and training an individual acquire knowledge, skills and
experiences that will help them to become productive and grow. Gaya nalang sa example the correlation
between the number of years of formal education and earning like if you attend proper education for
many years there’s have a possibility that you will earn more compare to people who didn’t pursue their
study.)

2.Signaling Shows - how smart and hardworking an individual is, and a higher education diploma would
automatically help prove that rather than giving a costly and tedious assessment of an applicant, for
example.

- (Dito naman is sinasabi dito na kung gano katalino at kagaling yong tao is nasusukat ito sa
pamamagitan ng mga achievements nya like diploma, for example graduate ka ng magna cum laude
then nag apply ka for a job so iaasume ng company na papasukan mo na magaling ka and then
tatanggapin ka because you graduated as magna cum laude.)

- (Dito ung pinagkaiba lang ng human capital theory sa signalling shows is human capital theory posits
that human beings can increase their productive capacity through greater education and skills training
while sa signalling show naman is the productivity of an individual can see through evidence like your
achievements/diploma.)

The main concern for education is the relationship between schooling and the production of
workers to the economic growth and development. Universal Public Education is known to be free, but
it is not free at all; there are opportunity costs attached to it, like the money used for schools could have
been used to fund other services and social programs of the government.

- (Relationship between schooling and the production of workers to the economic

growth and development, yeah what matters most is how will your educations
affect you in the future, the productivity of yours to contribute to the growth and
development of pir economics. Kasi diba sometimes yong iba is kahit na sabihin
natin na may pinag aralan nga pero hanggang ngaun wala paring trabaho, and
some other do procrastination, crab mentality, prioritizing other countries
products and services and others that will not contribute to our economic.)
- (Universal Public Education is known to be free, but it is not free at all, alam
kung aware naman kayo dito kasi diba if mapapansin nyo public schools are
meant to be free right? Yeah sa mga tuitions and other incentives but in totality
it is not free at all. Aminin man natin ito o hindi ung mga nag aral sa public diba
 minsan nagrereklamo tayo na andaming babayaran daig pa ung private schools
diba. But I’m not saying na there’s a hidden meaning on it, it’s just that even if
it’s free meron at meron parin tayong babayaran and sometimes ung funds ng
school is ginagamit sa ibang bagay, for the community or government sake.)

Education economics is a part of the study of economics that deals with the demand financing,
and the quality of education, as it is seen as an investment rather than a cost in the annual budget. In
the Philippines, the education department receives the highest chunk of the budget as mandated by the
most recent Constitution. The Commission on Higher Education is also a priority to ensure the
production of professional and highly skilled workers.

- (Education department receives the highest chunk of the budget as mandated by

the most recent Constitution. As what others say “The school is the training
ground for all professionals” dito sila nahahasa at natutoto bago sumabak sa
battlefield or sa kalakaran ng mundo. Education is seen as investment kasi
inaasahan sila na mag produce ng maraming competent and outstanding na
mga professional for the sake of our economic growth because if there’s many
professional that is working in different fields, they tend to produce more profit
that will benefit our economic. And as our Pambansang Bayani say, ang
kabataan ay pag asa ng bayan, therefore it is important that kahit na bata
palang is mahasa na ung mga bata sa paaralan to contribute sa pag unalad ng
ating bansa sa hinaharap.)

Education is considered a positive externality; graduates tend to be employed who contribute to

higher productivity. This would increase GDP and thereby enhance the standard of living.

- (So yun gaya ng sabi ko kanina school produce professionals in different fields,
the graduates in other term so if they competent and find and hired on job they
tend to make profit and contribute to our economic growth also enhance our
standard of living.)

The main Issue in education economics is inequality of its proper distribution. The economic
solution is to promote equality by proper funding, introduce more competitions, and develop the skills
of the teachers. The government seeks higher funding for early education, both primary and secondary,
and in fact, it is mandatory in most countries around the world. More city colleges and universities are
opened to make higher education or even skills schools reach far-flung or rural areas. Programs are
introduced to enhance the skills of teachers through trainings and exchanges to other countries to
benchmark best practices quality education.

- (The main Issue in education economics is inequality of its proper distribution,

Yah kasi kahit sabihin natin na oo education is equal and free for all and anyone
can access to it equally but how about in the area of implementing it, the funds,
facilities and staffs? It is not equal at all kasi diba if mapapansin nyo lalo na sa
mga rural area nagkukulangan ng mga classroom, teachers and facilities unlike
sa ibang schools so asan ung equality dun dba, kahit na sabihin natin na pare
pareho lang naman ng tinuturo pero ung quality ng pagtuturo is iba some
teachers are incompetent, some activity cannot be properly implemented
 because of lack of resources and materials and dahil dito hindi masyadong
naibibigay sa bata ung quality education na dapat ibigay sakanya. And dahil
dito sa mga barriers na ito is gumawa ng action ung government like giving
higher funding to education, building universities in rural areas and training
teachers.

Figure 13.7. College Wage Premium

- (Dito sa figure na ito is ineexplain lang na human capital plus signalling shows
equal to college wage premium. Like if you study for many years, gain
knowledge, skills, proper training and experience plus your diploma that shows
that you really graduated then there’s a high possibility that mahahire ka sa
papasukan mong trabaho thus allowing to gain profit or wages.)

It is believed that college graduates earn more, thus, contributing more to the GDP of the
country, according to the concept of “College Wage Premium.”

- (Yeah same sa sinabe ko kanina graduates helps more on contributing on our

GDP and the “College Wage Premium” also said it ung nasa figure kanina. )

Economists agree that education benefits all of us; it helps reduce poverty and inequality and
hence improve social cohesion, increase productivity, and develop the economy.

- (Yes, I know the majority of us agree with it kaya nga sabi ng iba is “Education is
the key to success” Education becomes our sword to fight our battle and
challenges in this world thus allowing us to fulfill our dream and reach the
success we want. Kahit na sabi ng nakakarami is diskarte lang ang kailangan
para umasenso, but it is not given to everyone , sa pag aaply na nga lang ng
trabaho, example cashier is need pa na college gradutes mga ganun so
education is really important it allows us to find jobs, acquire knowledge and
skill to fulfill our desired job and have prior knowledge how to handle things in
job an in world. Also education helps to reduce poverty if you are educated you
can find jobs and work to make profit thus allowing you to have a comfortable
life, also inequality for example in inequality in social status you make use of
your education to work, make profit, improve your image and increase your
social rank, education also helps to increase productivity and develop our
economic growth.