The quality rather the quantity of education will better a nation’s economy in the developing world according to a Stanford University expert.
“If there is going to be inclusive economic development across the world, attention must focus on school quality and having all students achieve basic skills,” wrote Eric Hanushek, a Stanford economist in a new study published in Science magazine.
The implications are more important for developing countries as these countries lack knowledge-based economies.
Many believe rates of school attendance, student enrollment and years of school to be major factors affecting the economy. However, economic growth is highly dependent on students’ basic skills in math and literacy.
Increasing human capital – the combined economic value of the skills, knowledge and experience within a community – has been misinterpreted in its implementation, according to Hanushek. He said it has led to policies looking to increase head counts, enrollment and retention in schools, ignoring important issues related to increasing skills and knowledge among students.
“We argue that too much attention is paid to the time spent in school, and too little is paid to the quality of the schools and the types of skills developed there,” Hanushek wrote with co-author Ludger Woessmann, an economics professor at the University of Munich.
The study indicates ‘knowledge capital’, cognitive skills of the population, rather than human capital of ‘school attainment’, the highest level of education completed, is the key factor in economic development. The study also finds student enrollment measures have no correlation to how much students are learning.
Track records show, leading world economies are changing to knowledge-based economies.
“They require both the skills to innovative and a highly skilled workforce to execute new designs. As economies move from agriculturally based to manufacturing based to knowledge based, the importance of cognitive skills becomes magnified,” he said.
He also added, job markets rapidly change in growing economies, requiring individuals to adjust to new demands.