Education and Economic Growth

  • Education and Economic Growth

    What exactly are the benefits of education? This might seem like an obvious or a trivial topic, but in fact, it involves some very deep economic issues. First of all, education increases human capital in the labor force and that raises wages. Workers who can read and write very well are more productive than workers who cannot. Workers who have a Master’s degree are also more productive. Furthermore, these workers may be more innovative and as we all know, innovation is one of the major drivers of economic growth. An educated workforce is also abler to accept and use the innovations generated by others.

    Education enables the worker to work with computers. Many of the most important benefits of education are intangible. For instance, education seems to develop a greater sense of mindfulness in school and eventually in the workplace and also as individual citizens. Societies which have greater degrees of trust and greater degrees of cooperativeness can also be less corrupt. So through these indirect channels, a well-educated society may become a less corrupt society. Thus a society are better able to enjoy the fruits of economic growth.

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