Abstract
It is well established that improvements in education are associated with long-term improvements in economic performance. There are three broad theories about how education influences economic performance according to David Earle (2010):
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The basic human capital approach is that education improves the overall skills and abilities of the workforce, leading to greater productivity and improved ability to use existing technology, and thus contributing to economic growth.
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The innovation approach links education to improving the capacity of the economy to develop of new ideas and technologies.
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An extension of this is the knowledge transfer approach, which sees education as a means of spreading the knowledge needed to apply new ideas and make use of new technologies.
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Tara, S., Kumar, N. (2016). Primary and Upper Primary (1-8) Education: Initiative for the World of Work at the Primary and Upper Primary Education in India. In: Pilz, M. (eds) India: Preparation for the World of Work. Springer VS, Wiesbaden. https://doi.org/10.1007/978-3-658-08502-5_3
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