Abstract
A direct link exists between college education and higher productivity in employees that can cause an improvement in the country’s economy. On the other hand, it has been seen that there is a relationship between a country’s population size and economic growth. These two highlighted relationships will be discussed in the paper.
Effect Of College Degree On Economy
More pressures are faced by wage rates as labor supply increases and if the demand of labor does not match labor supply then wage rates face a decrease and this is particularly a worrisome situation for employees having lesser education as they are not eligible to enter certain advanced industries as employees. Industries have higher demands in terms of education and training in employees; thereby these industries offer better salaries and wages along with greater facilities. Higher education plays important role in this case. The country’s economy is more dependent on the education and training levels of its industries’ employees.
Thereby other than training, college education has been considered as a major influence on a country’s economy. It is observed that employees with less education earn less as compared to employees with higher education. Moreover, it has been observed that college education is an important factor in better earning as there are more chances that educated employees use their skills and knowledge in the workplace thereby improving productivity.
Based on these facts; it has been seen that there is a need to develop an advanced education system so that young workers produced have advanced knowledge in technology and science so that they can integrate as employees in modern industries of science and technology. As it was observed that older industries in developing countries were failing. Educated workers have the capability to improve productivity, as they use critical thinking and analysis keeping their aims and goals in mind thus improving the overall output of the industry and improving economies.
Fertility Rates And Economies
Decreasing fertility rates in any country are directly linked to the growth and industrialization rates of a country. This was the case in England in the 19th century as rates of industrialization increased and it has been observed in Asian countries recently. Fertility has been linked to the food supply and it has been argued that if more food is available, the fertility rates will be higher causing an increase in population size to such an extent that causes a shortage of food supply thus causing people to be pushed down to the level of subsistence.
It has been argued that a rise in productivity causes a rise in population density but this growth remains so until wage rates are normalized. It has been argued as observed by the economists that there is increases in per capita income are not associated with an increase in population. Many studies have shown a relationship between population and economic output as since the last century, many developing countries have experienced growth in per capita income with an increase in population. However, a contrasting situation has been observed in case of Europe, where with an increase in population, no change in per capita income was observed between 1700 to 1950.
Instead, there is a belief in European countries that per capita incomes can be increased by having lesser and stable population thereby showing lesser fertility rates. This inter relationship has not been studied but two important factors have been linked to the decrease in fertility rates. These include time and cost invested in raising children and quality/quantity trade off related in raising children.
On the other hand, it has been argued that European countries are in a need to take into consideration a reduction in workforce because of lesser fertility rates and lesser population growth. According to a report, there will be a 47% decrease in European work force by the year of 2050 and a 50% increase in adults aging 60 years by 2040. With the decrease in workforce, negative effects on European economies are anticipated.
Conclusion
Better college education increases analytical skills and knowledge that can help these employees in increasing their productivity at work. This is linked to an increase of industrial output causing an improvement in country’s economy. On the other hand, it has been argued that there is a link between fertility rates and country’s growing economy.
References
Schiller, R. B. (2004). Essentials of Economics. Edition 5. McGraw-Hill/Irwin.