ERIC Number: ED371138
Record Type: RIE
Publication Date: 1994-Apr
Trial by False Fire: Education's Role in U.S. "Economic Decline." Policy Brief Issue Number 4.
Rand Corp., Santa Monica, CA. Inst. on Education and Training.
A review of long-term international economic trends and the literature linking education and training (ET) to economic performance reveals no evidence of deindustrialization or falling labor productivity in the United States. Over the last 40 years, the nation has experienced lower growth rates in gross domestic product and productivity but remained the world leader in both. What is seen is a trend toward general conversion on those dimensions among nations in Organization for Economic Cooperation and Development. ET and its effects on labor quality are generally found to be among the most important contributors to economic growth, but, so far, scientific attempts to establish just how this mechanism works have not succeeded. Likewise, there is only sketchy evidence about the importance of human resources to a firm's success. The shortcoming may lie in the two approaches economic research has traditionally taken to the question--one focusing on the macro level of economic growth, the other on how ET affects individual wages and worker productivity. A more systems-oriented approach would be more appropriate and equal to the task. Taking this tack would mean developing a new theoretical framework that includes approaches as diverse as business and economic history, evolutionary economics, and case studies of matched firms in different countries. (YLB)
Publication Type: Reports - Research
Education Level: N/A
Sponsor: Lilly Endowment, Inc., Indianapolis, IN.
Authoring Institution: Rand Corp., Santa Monica, CA. Inst. on Education and Training.
Note: For the report on which this is based, see ED 366 801.