Education and economic growth

Abstract

"Education is the 'raw material' of the knowledge-based society which is at the centre of the new neo-classical growth theory, and most of all at the heart of the evolutionary growth theory, as the innovation capabilities of economies depend on human capital. According to the more recent theories of economic growth, not only the level of per capita income is influenced by qualifications but also the economic dynamics. First, this paper discusses the importance of human capital for the growth theories and presents some estimates. Then the private and social incentives for investments in human capital are dealt with and the connection between qualifications and labour organisation is shown. In conclusion, the human capital trends in Germany are analysed and compared with those of other countries. The relative human capital trends show that Germany is putting at risk the most important resource for its economic development. The labour organisation model of the Federal Republic of Germany, which has made possible a highly flexible quality production, demands a relatively homogeneous qualification structure whose foundation is removed by neglecting investments in education, thus endangering economic growth in Germany." (Author's abstract, IAB-Doku) ((en))

Cite article

Schettkat, R. (2002): Bildung und Wirtschaftswachstum. In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Vol. 35, No. 4, p. 616-627.