1. Chapter 7: Education
Beyond Economic Growth: An Introduction to Sustainable Development
By Tatyana P. Soubbotina

2. Overview of Chapter 7: Education
Education builds human capital
Private and public investments in education
Primary education and literacy
Two important literacy gaps
Issues in secondary and tertiary education
Does more spending increase

3. Education builds human capital
Human capital (people’s abilities, knowledge, and skills) is a key driver of growth in the “knowledge economy”
Governments, private companies, and individuals invest in education and training to grow human capital
Sometimes private returns to education are low
if education is of low-quality or doesn’t provide needed skills
if little demand for human capital, e.g., from slow growth
if educated workers do not receive higher wages
Governments fill the gap, e.g., by providing primary education or financing higher education

4. Primary education and the literacy gaps
Primary education provides literacy and numeracy leading to higher productivity and improved health
Primary education is not universal in developing countries (Fig. 7.1) due to i) poor quality schools, ii) inaccessible schools, iii) need for child labor, iv) obstacles for girls
Two important literacy gaps (Fig. 7.2)
Higher literacy rates in higher income countries
Higher literacy rates for males than females

5. Secondary and tertiary (post-secondary) education
High-income countries have a large and increasing advantage in secondary and tertiary education enrollments (Fig. 7.3 & 7.4)
Reasons: child labor, limited access
Can education quality be improved?
More resources may not be the answer (Fig. 7.5)
Information technology could be instrumental
Education and training must meet every-changing needs of “knowledge economy” workforce