Education has a direct effect on people’s lives and on society as a whole. Thanks to various research works, it has come to be understood that many economic and social problems have their origin in low levels of education.
The influence of education is so powerful that I think it is necessary to remember the main reasons that make it necessary to invest in education. Because there are many who defend the importance of education, but reality shows us that it is not being given the priority it deserves. If we want our society to progress, it is necessary to invest in education.
Reasons why to invest in education:
- Education improves people’s standard of living
Scientific research in recent years has shown the benefits of quality education. The equation to prove it is simple: with a higher level of education, a person manages to obtain a higher level of income than if they did not have that training.
Theodore Shultz was the first researcher to point to education as a form of investment, as opposed to who saw it as an expense. Their work demonstrated, for the first time, that education leads people to improve their income level and their level of well-being. His studies earned him the Nobel Prize in Economics in 1979. Investing in education brings direct returns for people.
- Education improves the level of well-being of society
The benefits of education do not remain only with people at the individual level, society as a whole also gains with a higher level of training. If more training is associated with higher income, people with more training pay more taxes, thereby making a greater contribution to society.
School failure and school dropout are an obstacle due to their impact on families, on the level of well-being and on social cohesion. And the problem also has a direct impact on the public coffers, since the lower the training, the lower the salary and the lower the consumption.
The data are very relevant especially for those countries that have a high rate of early school leaving, such as Spain – with a rate of 29% compared to 14% in the EU. And more, if we take into account that, despite multiple educational reforms, the rate has remained practically stable for many years.
- Education is essential in the “learning society”
In the book “Creating a learning society” (“Creating a learning society”), its author Joseph E. Stiglitz asks the question, what is it that generates growth in a society? And he makes his point: we need to create a “learning society” as a formula to achieve economic growth, development and social progress.
In our society, we cannot allow ourselves to stop learning, education becomes an essential role. Social progress in the 21st century will be the result of how we teach our young people. We are what we are by our education. For this reason, education must reach more people, it must be continuous and must be in tune with what society needs. We must understand education as the heart of progress and this forces us to be demanding. Education must change and must incorporate skills and competencies that may not have been necessary in other times but are now essential.
Continuous learning is necessary because people must be prepared for a future that we do not know what it will be like.
- Education improves non-economic aspects in people’s lives
Beyond the impact of education on people’s remuneration and the generation of wealth, various researchers in the field of Economics of Education have also detected positive non-monetary effects. These, of course, are more difficult to quantify but can be identified and assessed through various procedures.
Thus, we find authors who have shown that the level of education affects aspects such as:
– the degree to which an individual enjoys their work: people with a higher level of training are more satisfied with the work they do;
– education can lead individuals to make better decisions in aspects related to their health or lifestyle;
– and education can make individuals more patient and goal-oriented.
Therefore, we are not referring only to benefits at an economic level, but also to benefits in quality of life.
- Investing in education pays off
The works of James Heckman have concluded that the profitability of investing in early childhood education is superior to other types of investment.
If society invests in early childhood education, it encourages schooling, reduces crime, improves children’s skills and leads them to higher income levels in their future professional lives. A higher level of income has an impact on improving the lives of the person and contributing to a higher level of taxes to society and, therefore, generates greater social well-being.
Education has a direct impact on the income of the person, contributes to generating wealth in society and affects the way of facing the life of each person. I think they are reasons
powerful enough to seriously consider the need to invest in education efficiently and the need to face the challenges facing our education system.
Probably wanna read:
- Importance of stock market analysis
- Importance of investing in stocks
- The keys to managing the risk of your investment
