What is the reason that makes college graduates earn significantly more than individuals without a college degree? What is the correlation between any country's economy and its schooling system? Understanding the existent link between a nation's education system of a nation and its performance economically is crucial for comprehending why some working individuals, organizations, and economies prosper, as others perform poorly.
As labour supply surges, the economy experiences a plunging pressure workers' pay rates. Wages, typically, decline when the labour demand by organisations and other employers is not at par with the labour availability. Exorbitant labour supply is also harmful to the employees working in industries that have extremely low barriers of entry for novel entrants into the workforce, i.e., entrants with limited expert training or lacking advanced educational qualifications. On the contrary, industries with advanced qualification requirements are known to pay their employees much higher remunerations. Moreover, the requisite specialised training for obtaining these qualifications is only achievable with considerable financial costs.
Education Is a Profitable Investment
The significance of being knowledgeable and educated has been acknowledged since time immemorial. For instance, Plato mused: "if a man neglects education, he walks lame to the end of his life." Currently, families are willing to spend a fortune to make sure their kids get a good education. Besides paying for tuition, boardroom, and other expenses for their students to learn comfortable, some have even gone further to aid their academically struggling kids to get the help of professional custom writing services for their essays. Getting the aid of professional and seasoned custom paper writers is considered crucial for improving their kids' grades.
How High-Quality Education Is Beneficial to an Economy
Globalisation efforts need nations and economies to compete with each other. Nations that are economically developed always have competitive advantages over the still-developing economies. Characteristically, huge economies have numerous operational industries that have varying competitive edges and demerits in the worldwide market. The education system and training of a country's personnel are among the most crucial factors that determine how well an economy performs.
A successful economy is equipped with a labor force that has the capability of operating various industries at levels where the economy gains a competitive edge against the rest. Governments may make efforts such as incentivising education through the provision of facilities for adequately preparing the taskforce, offering tax breaks, or providing varied means that are designed purposely for the creation of a workforce that is adequately skilled. Even though it is extremely difficult for any economy to lead in every industry, it's still possible for any economy to put its efforts in a few industries and aim to prepare well-skilled personnel in the selected industries.
The differences in the quality of education and training are considerably crucial factors that distinguish developing from developed economies. Even though other factors such as availability of resources and geopolitical factors come into play, having a well-trained task force brings about spillovers in the economy and thus creating numerous useful externalities. Essentially, all organisations stand to benefit from an economy having a workforce that is adequately trained.
Benefits of High Quality Education to Employers
All employers want to employ workers who are well-skilled, productive, and need less or no supervision to work efficiently. Firms have even gone the extra mile to train their employees; some of the factors that employers consider when planning to pay for the training of their employees include:
- How will the training increase workers' productivity?
- Does the productivity increase warrant financial investment in the training?
- Will the training give the workers leverage to increase their power of bargaining and thus demanding higher wages?
With highly knowledgeable and already adequately trained workers, companies do not have to be worried about spending significant amounts of funds to give their workers training.
Benefits of High Quality Education to the Working Public
Through the development and refining of individual capabilities, it is easy for workers to increase their earnings by a considerable margin. The more a worker gets knowledgeable about a particular job, the more they comprehend that particular industry and thus becoming more valuable to employers. Typically, workers' earnings increase by a considerably larger percentage compared to the cost of obtaining advanced skills and competency in a given field.
The majority of nations around the globe have placed a huge emphasis on the development of a system of education that is capable of producing a taskforce with the ability to function in emergent industries like technology and science. This movement to better the fundamental education of the general public is largely due to the belief that everyone deserves a quality education. An economy's productivity increases as the number of skilled working individuals increase since well-trained and educated workers can effectively do many tasks that require advanced literacy and critical thinking skills.