Schultz: The Economic Value of Education

TW Schultz, “The Economic Value of Education,” New York (1963).
"My aim is to bring economic analysis to bear on education" (1).

"Concepts of education, like those of freedom, bristle with difficulties...Education is intimately bound to the culture of the community it serves, and for this reason what education means differs from one community to another...Thus, to educate means etymologically to educe or draw out of a person something potential and latent; it means to develop a person morally and mentally so that he is sensitive to individual and social choices and able to act on them; it means to fit him for a calling by systematic instruction; and it means to train, discipline, or form abilities, as, for example, to educate the taste of a person" (3).
Shultz makes a distinction between schooling and education, the first being former and the later less rigidly defined.

"From the evidence already presented, the picture is that schooling and advance in knowledge are both major sources of economic growth. IT is obvious that they are not natural resources; they are essentially man-made, which means that they entail savings and investment. Investment in schooling is presently, in the United States, a major source of human capital" (46).

"Thus, a concept of capital that is restricted to structures, producer equipment, and inventories may unwittingly direct attention to issues that are not central or critical in understanding economic growth over long periods" (47).