This article discusses the (surprising to some) LACK of empirical relationship b/t formal education and income at a national level –
Over the past decade it has became an article of faith that education and skills make a vital contribution to economic performance (1). Deficiencies in national labour productivity and economic growth are increasingly attributed not to inadequacies in productive investment, but to educational shortfalls and weak labour skills (2).
…’African countries with rapid growth in human capital [the fashionable term for people’s work abilities, especially levels of education] over the 1960 to 1987 period – countries like Angola, Mozambique, Ghana, Zambia, Madagascar, Sudan, and Senegal – were nevertheless growth disasters. Countries like Japan, with modest growth in human capital, were growth miracles. Other East Asian miracles like Singapore, Korea, China, and Indonesia did have rapid growth in human capital, but equal to or less than that of the African growth disasters. To take one comparison, Zambia had slightly faster expansion in human capital than Korea, but Zambia’s growth rate was seven percentage points lower.”
The Mallu economic malaise is a perfect example – statistically, at least, it’s the most educated state in India but, alas, also one of the poorest. Books, degrees, and examinations mean little for economic growth without a comprehensive social fabric that praises constructive, gritty real world results over idealized, intellectual banter….