World education in relation to Economic growth

Introduction

This paper reviews how economic growth has been promoted by the education role. Education is determined as an indicator of the economic well-being of a country.  The theoretical growth has emphasized on three mechanisms in the education system that have affected the economic growth. Yielding in education brings significant development benefits (Benos 669-689). This is because it increases income, boosts economic growth and reduces poverty.  Education is one of the investments a country can make in its future and the people around it. Through education there is capability of knowledge and increase innovations and technological advances.

How education is key to economic growth

At first education has been considered to increase the human capital in the labor force. This has therefore increased the labor productivity has translated to transitional growth in the output of economic growth theories.  Education has also been considered to increase the innovative capacity in the economy, the new technology knowledge and being able to understand the process that will enable promotion. Education has also facilitated transmission and diffusion of creativity in the implementation new technologies that have been developed by others to contribute to economic growth. The year of schooling does not reflect the same cognitive skills everywhere (Stromquist 1). This is because the families and also peers also contribute to education. Another great impact of the cognitive skills is health and nutrition.

Valuing of schooling focuses on the economic returns in the different attainment in the school levels. This has reflected that more learning is correspondent to high individual earnings. The people who think about how the human capital affect the economy have looked into the nation’s economic future by skirting the question through looking at the school attainment. This has been extending through schooling years of a student. The use of the average number of years in school has been a good indicator of the economic growth in relation to human capital. (Keller 18-34). This has been approached into two different ways which include an assumption that the education systems are similar and that this measure does not put into account education that goes outside the classroom around the world.

Cognitive skills

A more direct measure has been looking at the performance of the students in science and math’s which has been termed as average cognitive skills that contribute to the human capital. The level of cognitive skills in a student largely affect the economic growth of a country.  There are also factors from the institution that affect the growth of economy of a country.  Increasing the average number of student’s years in school attains labor force which is able to boost the economy of the country that rely on the increased cognitive skills attained in the schools It is also important to understand that the impact caused by the cognitive skills in the economy of a nation depends on whether the economy is extended and open to more than internal influences which includes influences to outside trade. When an economy is open, more country’s student acquires high level of cognitive skills. When the number of average year of schooling is high, the economy tends to grow at a higher rate. This was also reflected that the average years a student is schooling increases the growth rate in GDP.

Education system in U.S as compared to other nations

United states

The American education has had two different distinctions that include, national and local control of education and the private and public schools. The federal system has put the local and state government to be in charge of education. Historically the United states believed that economic prosperity and growth is led by partnership of the state, federal and local government. The public schools have been receiving funding from the government and are subjected to the rules that they are well distributed whereas the private schools do not receive funds from the government. It has been clear that other countries have got different system of education different to the one that exists in the United states (Delgado 334-359). The United states has put more emphasis on the decentralization of the private and public school’s options while other countries have tried to centralize the private, public and religious schools that have received funds from the government equally. The schools have also nationally mandated exams and the teacher’s pay scale.

Developed countries

Other developed countries have been able to continue steadily in the development of educational attainment and in other cases such as the postsecondary completion that have been more than in the united states. Countries have been able to develop and achieve a greater productivity in school systems than in the United states. The centralized system has also helped in promoting equity in the establishment of education that has improved the cognitive skills in the nations through the equal distribution of fund. This has therefore enabled the economic strengthening of the countries with open economies and good education systems. Other developed countries have put more attention to the drawing their teachers from the top third of all the college students that have completed their degree (Coates). However, this has been contrary to the United states recruitment patterns despite the evidence that teachers are the most effective in the performance of student’s achievement and that it has been a decisive role in the highest performing countries success.

The U.S has never done well in the international school assessment in the performance of students. Their cognitive skills level is at average in comparison to other developed countries.  The high education systems have been affected in the U.S due to the increase in development of education systems in countries around the world. This has been through an improvement in opening their economies that has enabled an increase in cognitive skills and securing their properties which have therefore enabled them make a good human capital.  Economic growth has proven to flow from the reforms that are bringing actual improvement in education systems, identification of works and implementation of the wide scale society.

Benefits that the U.S can get from adapting other education systems

Strong state education system is not only good to the citizen of the states but also to the national economy. The connection between income, economic growth and education is strong. A more educated people are likely to participate in the jobs which enable the individuals’ economic security and provide family support. International comparisons in the achievement of students have illustrated gains that are possible for the United states students and have also offered insights on how they can achieve them.

Education improvements in other countries have increased their productivity in the sector of work force which should in turn reduce the import costs to the united states, which should therefore benefit the united states residents except for those that are competing to produce the same products and services (Ostry). Therefore, it is important for the United states to benefit from examination of the ongoing and also past research on the educational performance across other countries and also taking into considerations the high performing nations have done to help the students succeed.  The nations’ highly decentralized education system has reduced the public investment in schooling. It is therefore important that United states seeks centralization of education systems and offer support to all the schools to be able to stabilize the investment in school and also be able to increase the work force in the schools.  The United states also needs to put in place a policy agenda that will be centered on closing the gap of global achievement in economic growth between the U.S students and students from other developed countries that will complementary encompassing rational for education reforms that will enable achieve the gaps.

Another lesson is that the efforts of reforming in the United States should aim at improving the education quality available in the state as compared to other countries.  Students in secondary and elementary schools should increase the quantity of education that they are offered or they consume. The large economic return in the completion of colleges and also in the graduate’s degrees have suggested a considerable demand for people that are educated to the levels of policy makers and being wise in addressing issues.

Conclusion

The accumulated evidence has shown the outcomes of the economies in relation to education. Economic development relies heavily on the progressive and vibrant system of higher education measured on the outcome basis of cognitive skills, it has proven that they affect the economic growth of a nation.  What people know matter a lot in their economy which is influenced by the education system that is able to promote the skills of the workers. This therefore brings the attention that education matters to put more focus on people being in schools regardless the type of learning that is going on. Through reasonable calculations countries have less than 10% of their youths reaching numeracy and literacy levels despite the school attainment data looking better.  It is therefore important to understand that educational attainment is a key indicator of the human capital that is accumulated in the country’s population that nurtures global economic competitiveness and nation’s prosperity.

References

Benos, Nikos, and Stefania Zotou. “Education and economic growth: A meta-regression analysis.” World Development 64 (2014): 669-689.

Coates, David. Models of capitalism: Growth and stagnation in the modern era. John Wiley & Sons, 2014.

Delgado, Michael S., Daniel J. Henderson, and Christopher F. Parmeter. “Does education matter for economic growth?.” Oxford Bulletin of Economics and Statistics 76.3 (2014): 334-359.

Keller, Katarina RI. “Investment in primary, secondary, and higher education and the effects on economic growth.” Contemporary Economic Policy 24.1 (2006): 18-34.

Ostry, Mr Jonathan David, Mr Andrew Berg, and Mr Charalambos G. Tsangarides. Redistribution, inequality, and growth. International Monetary Fund, 2014.