ERIC Number: ED366801
Record Type: RIE
Publication Date: 1993
Reference Count: N/A
How Do Education and Training Affect a Country's Economic Performance? A Literature Survey.
In policy debates, the U.S. education and training (ET) system is often blamed for the nation's eroding position in the world economy. Long-term international analysis reveals little evidence of deindustrialization or falling labor productivity. However, other industrial countries have caught up. Most economic research directly concerned with ET can be grouped into two approaches--one focusing on the macroeconomic phenomenon of economic growth, the other one analyzing the effect of ET on individual wages and (to a lesser extent) worker productivity. However, the intellectual framework underlying these approaches is not well suited to analyze the current policy issues of international competitiveness and technological change. The main shortcoming of the growth accounting approach, which tries to divide up the credit for economic growth, is the assumption that the sources of growth are independent. The microstudies of the effect of ET on productivity also use assumptions that may limit their usefulness for policy guidance in a changing environment. The human capital studies assume a static economy in equilibrium even though economic growth is characterized by disequilibrium situations. Some promising alternatives in the economics of technological change take a more systems-oriented approach, although they have yet to be applied to ET. Important exceptions are the matched firm comparisons by Prais and his collaborators. (Contains 239 references.) (YLB)
Descriptors: Competition, Economic Factors, Economic Progress, Economic Research, Economics, Job Training, Literature Reviews, Outcomes of Education, Productivity, Role of Education, Technological Advancement, Wages
RAND Corp., Distribution Services, 1700 Main Street, P.O. Box 2138, Santa Monica, CA 90407-2138.
Publication Type: Information Analyses
Education Level: N/A
Sponsor: Lilly Endowment, Inc., Indianapolis, IN.
Authoring Institution: Rand Corp., Santa Monica, CA. Inst. on Education and Training.