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Education In Economic Theory


  • Jasmina Osmankovic

    () (School of Economics and Business, University of Sarajevo)

  • Hatidza Jahic

    () (School of Economics and Business, University of Sarajevo)

  • Ensar Sehic

    () (School of Economics and Business, University of Sarajevo)


This paper aims to show the evolution of the role and importance of education in economic theory, especially in theoretical approaches to economic development after World War II. In order to find answers and to present a current issue why and how certain countries have made progress while others have regressed in the development process, many theories and models explaining processes of growth and development have emerged and developed. By applying the method of analysis, synthesis and comparison, and based on earlier works, classification of theories of development has been made to analyze the evolution process of the role and importance of education in the development process. Presentation of the classification theory refers to: theories of economic development (the classical theory and contemporary models of development and underdevelopment) and theories of interdependence of education and development (theory of human capital, human development and approach to the returns on investment in education).This paper presents the basic settings, ideas and thoughts of the key authors of these theories and models and the role of education and human capital in these theoretical approaches. Research has shown that the analysis of interdependence of education and economic development has been the subject of interest of researchers for many decades and that today, taking into account the high degree of development of theoretical approaches, there is no full commitment to the classic theories nor there is a unified approach to endogenous growth, but an approach that promotes the elements of both, considering education as the key factor of development of the 21st century.

Suggested Citation

  • Jasmina Osmankovic & Hatidza Jahic & Ensar Sehic, 2011. "Education In Economic Theory," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 9(1), pages 63-78.
  • Handle: RePEc:tuz:journl:v:9:y:2011:i:1:p:63-78

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    References listed on IDEAS

    1. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," NBER Chapters, in: Investment in Human Beings, pages 9-49, National Bureau of Economic Research, Inc.
    2. Adsera, Alicia & Ray, Debraj, 1998. "History and Coordination Failure," Journal of Economic Growth, Springer, vol. 3(3), pages 267-276, September.
    3. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    4. McMahon, Walter W., 2002. "Education and Development: Measuring the Social Benefits," OUP Catalogue, Oxford University Press, number 9780199250721.
    5. Daron Acemoglu, 1997. "Training and Innovation in an Imperfect Labour Market," Review of Economic Studies, Oxford University Press, vol. 64(3), pages 445-464.
    6. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, June.
    7. Miguel-Angel Martín & Agustín Herranz, 2004. "Human capital and economic growth in Spanish regions," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 10(4), pages 257-264, November.
    8. repec:adr:anecst:y:1998:i:49-50 is not listed on IDEAS
    9. Jacob A. Mincer, 1974. "Age and Experience Profiles of Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 64-82, National Bureau of Economic Research, Inc.
    10. repec:kap:iaecre:v:10:y:2004:i:4:p:257-264 is not listed on IDEAS
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    More about this item


    Ethnocentrism; animnosity; consumer behaviour; Bosnia and Herzegovina;

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development


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