The Impact of Education on Economic Growth

Throughout history, education has become more important and accessible all around the world. This is because people have realized that education is one of the most powerful tools available, and the more we know, the more we are able to do in our lives. Now, many jobs require certain levels of education—such as college, tertiary, or post-secondary education—in order for candidates to be considered for the position.

One of the main benefits of education is that it improves upward social mobility. This means that individuals can better their standing in life by pulling themselves out of poverty and achieving financial stability due to employment. But education is not only beneficial for individuals, but also for an entire country’s economy. In this article, we’ll look at the impact of education on economic growth.

The Relationship Between Education and Economic Growth

Around the world, education offers the opportunity for individuals to gain knowledge to better their lives through enhanced employment opportunities. On average, returns on schooling are 10% per year of school completed. This means that individuals who complete more years of schooling are more likely to benefit from them through increased employment opportunities and higher compensation.

Additionally, education can improve a country’s human capital, which is the economic value of an individual’s skills and experience. One of the main ways to increase an individual’s skills and knowledge is for them to receive an education, and thereby enhance their country’s human capital. Because of this, education and economic growth are closely linked.

Education leads to more skilled workers, which leads to businesses that are more competitive and perform better. Educated individuals are also more likely to start new businesses that create jobs and revenue in local economies, boosting economic growth. This can also lead to an increased competitiveness edge for the country in the global economy.

Economic Development and Education in India

While getting an education is important across the world, it is particularly important in India. This is due to India’s large population, low literacy rate, and caste system that have left millions of individuals marginalized and under-resourced throughout history. Education is a way for Indians to change their own circumstances and improve their social standing. In doing so, they also benefit India’s economy by improving the quality of the workforce, creating new companies and opportunities in India, and driving more money into local economies. Between 1996 and 2016, India’s economy grew by 1.67%, which corresponds with increased tertiary education enrollment.

At Tiyara, we seek to provide educational opportunities that will make life-changing differences for under-resourced young women and men in India, equipping them to pursue professional and skilled employment. Some of these young women and men have had their lives changed by crime, others’ families are often discriminated against, and some are from indigenous populations.

You can help make a difference by providing technology for our students, other education-related costs, or by putting a deserving young person through college!