Byline: Urooj Aijaz
Relating economics with education means highlighting economic issues relating to education, including the demand and supply for education, the financing and provision of education, and the comparative efficiency of various educational policies which impacts any economy. Economics is a framework that not only allocate resources but it also identify that a well-educated labor force is crucial for any nation to compete in an increasingly global economy that only rewards skills and knowledge. Evaluating the productivity of educational institutions, study of incentives and choices will make economics more relevant to educational reforms and policies.
Education is the most important determinant of economic well-being/economic growth of any country as it catalyze the growth by creating impact on human capital, which improves productivity and transitional growth towards higher level of output, by increasing the innovative capacity of any economy through new knowledge and technologies, which promotes growth and by facilitating the diffusion and transmission of knowledge required not only to understand but for the execution of implementation devised by others. Hence the accumulated evidence from analysis of economic outcomes lie in the quality of education measured by cognitive skills, which have enormous effects on economic activities.
Human capital theory highlights that investment in educational attainment improves labor market and productivity by inspiring labor through better rewards on attainment, which reduce crimes and improves civic engagements that ensures better society but the important question lies in the fact...