site-img5Human capital theory supports the view that people with higher levels of education and lower incidences of chronic illness should have higher labour productivity.
Higher wages are found to be associated with higher education. A university education adds around 40 per cent to men’s and women’s earnings in Australia. People not employed or in the work force have less education and work experience, and also to be in worse health. It all seems intuitively logical and the basic ideas are not new. The Rand Corporation (1968) found similar relationships between health, education and productivity. ( ). Nearly half a century on the importance and potential of education and health may be about to reach a new phase of awareness and take-off. Could education and health become the vehicle for the next big economic stimuli?