The Role of Education in the Economy

The Role of Education in the Economy, Attachment 1

Capital Human Capital

• Bank Account• Shares of Stock• Assembly line• Steel plant

• Schooling• Training course• Expenditures in medical

care• Lecture on virtues of

punctuality and honesty

The Role of Education in the Economy, Attachment 1

Education is an investment in human capital

Virtuous Circle

EducationW

ealthIn

vest

men

t in

hum

an c

apita

l

The Role of Education in the Economy, Attachment 1

Public Sector

Education

Private SectorHuman Capital

The Role of Education in the Economy, Attachment 1

The most important producer of human capital in the U.S. is….

The Public Education System

The Role of Education in the Economy, Attachment 1

Education is the greatest contributor to economic productivity.

The Role of Education in the Economy, Attachment 1

Architect

Carpenter

ElectricianMortgage lender

Plumber

The Role of Education in the Economy, Attachment 1

The Role of Education in the Economy, Attachment 1