Education economics

ABSTRACT Education economics searches relationship between individuals' knowledge, skill, education level and economical variables. This relationship depends on human capital and arises from the ways like economic growth, developement, income distrubition, employment, unemployment, poverty, foreign trade, consumption and externality. Education, which is evaluated as an investment for human, is an input in the production process and associated with technology, R & D, information production and its extension. Education, which is main determinant of economic development, enhances quality of workforce which leads to increase in productivity, production and income. In this study, economic impacts of education is investigated depends on education economy and theoretical debates. Generally, education and economical relationships between schooling ratio, government sources for education, education investments, education expenditures, income distrubition, R&D, per capita income, economic growth, employment, unemployment, wage and poverty has been analyzed. Moreover, the comparison which also includes Turkey and different countries are showed. According to results of this study, developed countries, which have high education level, also have high level of per capita income and welfare. At the same time, economic development impacts positively on education level. These results show that both income level and education level effect each other mutually. There is also a close relationship between education level and income distribution. In developed countries income distrubition injustice is seem less than developing economies. According to other results of the study, in developed economies, goverment allocate more resources than developing economies. Countries that have higher education level are better position and advantage on R&D, technology, employement and foreign trade capacity than developing countries. According to that, increases in resources for education is a main determinant for the solution of economic problems. Keywords: Human Capital, Education, Education Economics, Economic Development, Economic Growth