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CHAPTER -11
The role of education in bringing about social status and its
linkage with employment has attracted the attention of researchers and
social sc~entists from very early times. The early attempts to measure
the contribution of education to economlc growth were made by
Schultii (1961) and Dcnison (1962). Schult7's analysis was based, on
'rate of re~urn to tlunian Capital' approach and Denison's was based
on the 'gro\cth accounting' approach. Both of these showed that
education contributes directly to the growth of national income by
improving the skills and productive capacities of labour force. The
'rate of rcrum approach' adopted by Schultz to nieasure the
contribut~on of education to economic growth suggest that a
substantial portion of the rate of growth of output in the U S is due to
investment in education. The 'growth accounting approach' is based
on the concept of an aggregate production function which l ~ n k s output
( Y ) to the ~nput of physical capital (K) and labour (I,). Denison
calculated that between 1930 and 1960 about 23% of the rate of
growth of output in the US was due to increased education of the
labour force.
Literature on Education and Economic growth
Early works by Bowman and Anderson (1963), demonstrated a
correlation between the level of per capita income and level of
educational development. According to them the fact that the rich
countries have higher levels of literacy and spend more on education
than poor countries means that education is both a cause and a result
of economic development.
Choudhuri (1969) has examined the relation between
education and productivity in Indian agriculture. Taking the 1961
data for the level o r education for agricultural workers and the gross
value of agricultural produce in each district he obtained a relationship
between literacy and yield per worker. Baldev Sing (1978) analysed
the inipsct o r education on farm production on the basis of the data
collected from October 1960 to January 1969 in 288 fann households
of Haryana. According to him the level of farm production is
signiticailtly higher in farms where the decision-maker is literate than
where the decision maker is illiterate. The World Bank research
(1980) on the links between education and productivity of farmers
showed that investment in iniproved seeds, irrigation and fertilizers is
niore productive in tenns of increased crop yields when farmers have
tivc years of primary education rather than none.
Wheeler (1980) found that on the average the increase in the
literacy rate from 20% to 30% causes GDP to increase by 8% to 16%.
He considered that general investment has less effect on growth rate
when it is not supported by educational investment.
Easterlin (198 1) examined the relationship between education
and economic growth in twenty five of the largest countries of the
world and concluded that the spread of technology of modem growth
depended on the greater learning potential and motivation arising from
the development of formal education.
John Vaizey et al (1972) contended that a measure of human
capital 1s as elusive as is the concept of physical capital. In their view
the key to understanding the role of education in growth and the
educational demands made by growtli Iles in understanding linkages
and coniplementarities t h ~ t exist between skilled labour, physical
Capital and other factors.
Thc relationsl~ip bctween investment and econonlic growth
was examined by N.Krishna Rao and K. hlukherjee (1967) and they
have worked out correlation coefficients between primary, secondary,
higher, higher tecln~cal and higher non technical educat~on and the
growth of the state per capita income. They have found that except
higher technical education and the rate of growth the correlation
cocfficient for all other levels provcd either insignificant or negative.
The relation between economic development and technical
educat~on in India was drawn by Crane Robert (1966). He concluded
that technical education was inadequate in India before the World War
I and den~onstrated that i t might have been one of the causes for
India's industrial backwardness.
In 'Returns to Education-An International comparison',
G.Psacharapaulos (1973) made an attempt to fill the gaps in the
understanding of the relattonship between education and the economy
as a whole. It explains the connection between the number of
educated persons and the productive efficiency of the economy. He
concluded that education is a good investment but it is the lower
educational levels that exhibit the highest returns. Also private returns
to all levels of education are much higher than social returns.
The findings of John.B.Knight and Richard.H.Sabot (1990) in
'Education productivity and inequality' provide strong backir,g for the
human capital paradigm. In their attempt to highlight the contribution
of human capital to economic development they examine the status of
education as an investment good that increases labour product~vity
and contribute to economic growth.
Jandhyala.B.G.Tilak (1994) examined the growth and
investment in education in the last two or three decades and analysed
the contribution of education to development. After examin~ny some
famous works on the role of education he reafiirmed the faith in the
role of education In fostering development.
N.V. Varghese (1992) contended that at present technology
forms the m a n Instrument of domination of the poor by the rich
nations. 'I'echnology import, according to the author, becomes a threat
to self reliant development. So by all means import of technology
should be restr~cted. This can be facilitated by developing a
professional body at the national level to deal with matters concerning
technology, This will prepare the ground for developing an
indigenous technological base. The author concluded that education
can become an important tool both in the generation and
dissemination of indigenous technology by revitallzing the now
defunct innovation chains.
The document 'T)evelopment and I'ducation' authored by
Brahni Prakash, N.V. Varghese and L.S. Ganesh (2000) polnts to the
reality that ~t is the process of technological Innovation as regulated by
the institution of niarkct forces which Corms the basls of social
development during the modern period. In their view education in the
future will have to address itself to the millions of people who are as
yet uncovered by lhc educational systeni. According to the111
educat~onal developme~it should be closely related to thesc aspects.
There sliould be a detcrniined lnterventlon in terms of plannlng and
managenicnt of education.
Ilarh~son and Myers, have examined the pattern of relationship
between hulnan resource development and economic growth. indices
were constructed on the b a s ~ s of enrolnlent ratios at various stages of
education in different countries and have arrived at various policy
conclusions.
Education and Employment
Mark Blaug, Layard and M.Woodhall(l969) found that there
is a certain sluggishness in the reaction speed In the market for
educated persons. According to them the sluggishness of the labour
market for the educated is due to the difficulties of changing jobs,
preference given to older candidates, non availability of information
on jobs etc. They conclude that the persistence of educated
unemployment in India can be explained by the resistance of educated
people to a fall in earnings which should accompany the increase in
their relative supply.
Richard Layard (1999) in the work entitled 'Tackling
Unemployment' explains what causes unemployment and proposes
what can be done to reduce it. He shows that the most important ways
to reduce unemployment are through welfare reform and improved
wage flexibility. The author suggests that all solutions for
unemployment should be analysed within a single coherent framework
that actually explains why unemployment exists as it is.
Mridul Eapen (1979) made an attempt to understand the
relative acuteness of the problem of unemployment in Kerala. She
made an effort to relate unemployment to the trends in employment
and real output. According to the study the problem is serious in rural
areas. A solution which can be sought is migration.
'Labour Markets in Action' written by RichardLFreeman
(1989) deals with some of the major research topics namely the
market for highly educated workers, comparative labour market
institut~ons etc. According to the author the dynamic force in the
college job market is the demand for graduates which depends to a
large extent on the structure of the economy, industrial activities and
changes in technology. Analysing the American job market for the
college graduates the author is of the opinion that overeducation will
be a problem in the job market for the next two decades also.
Layard and. Saigal (1966) made a study on international
manpower comparisons in their article 'Educational Occupational
characteristics of manpower-an international comparison' in the
British Journal of Industrial Relations. They postulated the
dependence of occupational -educational composition of the labour
force on the sectoral productivity of labour.
George Psacharapaulos and Maureen Woodhall (1985)
explained the hndamental issues which have to be addressed in
choosing an appropriate strategy for educational investment. If
educational investment is coordinated with other forms of investment
it will bring about better results in the development of human
resources.
The book entitled 'Employment and Unemployment in
Kerala'- some neglected issues- presents a comprehensive analysis of
the problem of unemployment in Kerala. In that book the author
E.T. Mathew (1997) is of the opinion that the average Keralite prefers
a salaried job to self employment and that has resulted in undue
emphasis being placed on liberal arts and science education to the
detriment of vocational and technical training which could lead more
easily to employment.
N.V.Varghese (1996) analysed the crucial phenomenon of
continued expansion of enrolments in higher education even when
employment opportunities for university graduates are declining. In
the article 'Higher Education and Employment of the Educated in
India' the author argues that this is primarily due to 'the qualification
escalation' process taking place in the labour market. An escalation of
educational qualification for jobs increases individuals' demand for
higher education.
Joseph. A.Thomas brought out a clear description of the
education-employment situation in Kerala in 1990. According to the
author increasing demand for education in the face of rising levels of
unemployment among the educated and the rising inequality in
economic achievement are two of the problems faced in the state.
In the book, 'Education, Unemployment and Econonlic
growth', the author Alan.L.Sorkin (1982) made an attempt to provide
a comprehensive treatment of the problem of unemployment. He
suggested the need for careful planning of the educational system to
suit the needs of economic development.
According to K.Ramachandran Nair (1995) there is a close
interaction between education, employment and development. He is
of the opinion that education develops not only aptitudes but also
attitudes.
In 'The Market for the Educated in Kerala' Chandan
Mukherjee describes the peculiarities of the job market for the
educated in Kerala. According to the author the main form of
employment desired by the educated is the salaried one.
'Labour Market and Human Resource Planning in Asia'-
perspectives and Evidence- by M.Maqtada and A. Hildeman (1993)
has undertaken a selective approach and is confined to themes that are
related to manpower and skills development, employment and labour
market analysis. The authors consider that planning for human
resource development is being increasingly considered as an
inseparable aspect of overall development planning in an economy. A
major thematic consideration of the work is the connection between
manpower planning and labour market analysis as two approaches to
human resource development.
A Comprehensive study was made by S.S. Khanka (1988) on
the labour force, employment and underemployment in the Kumaon
region of Uttar Pradesh. It examined the occupational structure of the
labour force, unemployment and underemployment of the region. The
study concluded that the problem in the Kumaon region is not
pr~marily that of unemployment but that of low productivity and
income on account of the underdeveloped and virtually stagnant
shucture of economy.
K.V. Easwaraprasad (1979) in his study on the problem of
unemployment of professional manpower in India examined the
influence of several factors on the unemployment of highly qualified
professional manpower. The study showed that the duration of
unemployment varied significantly among different categories of
manpower and unemployment problem was one of mismatch between
job expectations generated by the educational system and the job
opportunities available in the labour market.
The situation of educated unemployment is explained by
M.D.Apte (1975) in his article 'Education and Unemployment in
Kerala'. According to him the progress of education has created the
problems of ever growing expenditure on education, the mounting
problem of unemployment and that of export of educated manpower
in Kerala. The migration of state's educated manpower created a
shortage of skilled manpower.
P.V.Rajeev (1991) examined in detail the problem of
unemployment in Kerala in his work 'Economic Development and the
Unemployed.' According to him the employment generation in Kerala
demands more investment in productive sectors and in public sector
undertakings compared to investment in public administration and
social services. In his view restriction of entry into higher education
will be a solution to the problem of educated unemployment.
K.N.S. Nair (1994) traced the need for proper linkage between
educational planning and employment planning. In the article
'Employment and Unemployment - Regional Dimension Vs National
Strategy, he presented the vlew that educational system needs
restnrcturing in order to integrate it with a general strategy to develop
human resources. In the absence of realistic employment planning in
our educational and economic planning there is the mounting problem
of educated unemployment.
B.A. Prakash (1988) examined the relationship between
economic development and changes in the pattem of employment in
Kerala in his article 'changing structure of employment in Kerala'.
He contended that Kerala's development during the planning era is
associated with a shift in employment from primary to the tertiary
sector bypassing the secondary sector. In another study entitled
'Educated Unemployment in Kerala' the author examined the
magnitude of educated unemployment in the state. In his opinion the
lack of adaptability of educated labour to the changing employment
pattem in the economy has resulted in massive unemployment among
the educated. According to him the lack of suitable avenues of
employment in the productive sectors of the economy lead to a
preference for jobs in the service sector.
Gopinathan Nair and Joseph Thomas (1984) revealed the
paradox of increase in private demand for education even in the face
of high levels of unemployment. Also according to them,
unemployment is acting as a stimulus to private demand for education.
While drawing out the education-job market linkage in Kerala they
identified the existence of serious mismatch between education and
employment in the job market.
Oommen's study (1994) entitled 'Acute Unemployment
Problem of Kerala-some explanatory hypothesis- is a deep and
comprehensive study of the problem of unemployment especially
among the educated. According to him the problem of unemployment
experienced in Kerala is of a structural nature which is being produced
and reproduced through a stereo type formal and informal system of
education.
The work entitled 'Education and Employment Problems in
Developing Countries' written by Mark Blaug (1973) deals with the
fundamentals of educational planning especially in developing
countries. According to the author educated unemployment is due to a
mismatch between aspirations and opportunities. Education converts
underemployment into open unemployment Blaug stressed the fact
that public subsidies to education always result in excess demand for
education and hence in excess supply of educated manpower.
The work 'Graduate Unemployment in India' authored by
J.L.Azad (1975) endeavours to prove that unemployment and under
employment among the educated persons in general and graduates in
particular results in a skewed socio economic development of the
country. According to him the large involvement of educated
personnel in teaching and administrative jobs indicates the suitability
of general education for such activities or the educated prefers !.hose
jobs due to the nature of work involved. The study proves that the
incidence of unemployment among the arts personnel is the maximum
whereas the same among the personnel from the discipline of
education is minimum. The author considers that the rate of
unemployment among the educated persons may be due to their
hesitation towards self employment or due to their oversupply or
preference for wage employment. The author concludes by
emphasizing that the problem of educated unemployment is multi
dimensional.
In the 'Politics of Manpower' T.N.Dhar (1976) stresses that
graduate unemployment can be attributed to the disproportion that
exists between educational provisions and the absorptive capacity of
the economy for educated manpower. According to him limited
employment opportunities for the educated have partly resulted in
increasing the demand for education in order to have a competitive
edge in the job market. He contends that because there are too many
educated seeking jobs, educational requirements of jobs have come to
be constantly upgraded. In his view the responsibility for educational
inflation does not rest with only those who demand it, but also with
those who supply it.
The Problems of Higher Education Regarding cost, finance and
other matters
The Report of the Education commission (1970) Govt, of
India, while refemng to the cost and finance of higher education
remarked that the universities should be Freed From direct public
accountability of their expenditure. The commission recommended
for a reduction of wastage at all levels of education.
Panchamukhi (1965) calculated the cost of education in India
for the period 1950-51 to 1959-60. According to him the total cost of
education constituted 6.2% of GNP in 1959-60.
Ruddar Dutt (1974) studied the cost of education in India with
the aim of analysing growth and variation in educational expenditure
during 1951-61 with respect to objects, institutions, state sources and
management. The study revealed that the total expenditure increased
by 201% and the expenditure per pupil rose by 162% during the
period. He found that the relative contribution of fees to total
expenditure on education was declining.
Tilak (1987) analysed the returns to investment in education of
the weaker sections as compared to others. He found that while social
cost increased with the level of education institutional cost formed
only a small part of total social cost.
Ramachandran (1987) attempted to analyse the problems of
higher education in India with special reference to Kerala. The study
revealed an evergrowing expansion of enrolment, institution and
expenditure over the period. Whereas the total expenditure was
increasing year after year the growth in fee receipt was very low. He
opined that the bulk of the public expenditure on higher education was
spent for the development of Arts and Science Colleges in the state.
He pointed out that salary constituted the largest component in the
total cost of education.
E.T. Mathew (1991) analysed the sources and uses of funds of
private colleges in Kerala for the period 1972-86. He found that
among the institutional sources of finance, grants from the state
govemment constituted over 90%. He revealed that the inadequacy of
govemment grants was overcome by most of the private management
by resorting to compulsory donations.
In his book, 'The cost of Higher Education in India' A.Abdul
Salim (1997) analyses the phenomenal growth of higher education
during the period since independence. According to him the burden
on the govemment is heavy since the receipts from the higher
education sector is extremely low and remains virtually unchanged.
He emphasizes the need for bringing about systematic changes in the
policy of subsidies and pricing of higher education after a careful
analysis of socio economic status of the students.
V.S. Raju (1996) in his article 'Higher Technical Education-
Linkage between academia and Industry' discusses how industry-
institution interaction can be fostered for the betterment and benefits
of both. According to him the quality of graduates is generally found
to be deficient in industry orientation due to the absence of industry
exposure for both the students and the faculty.
Bikas.C.Sanya1 (1996) analysed various issues open to the
countries in tackling the problems of higher education in the article
'Education at the close of the 201h century'. He emphasized that the
education system should cooperate with industries to generate new
technology to industries to respond to the changes in the scientific and
technological domain.
S.J. Patel (1965) in 'Educational Distance between Nations-Its
origin and prospects' found that educational distance between nations
is much narrower than economic distance. According to him the
present day advanced countries have accomplished their educational
transition within a short span of time. Also he found that a faster
development of the higher stages of education constitutes an important
element in educational planning in developing countries.
In the 'Economy and Human Resources' V.P. Batra (1978)
studied how the problems of manpower planning has been
successfully tackled ~n advanced countries like the USA and Russia in
order to derive a conclusion from their experience. But he was unable
to accept their solution because in the context of a developing country
like India the solution offered by the West in inconsequential. The
author suggests that there is the need for setting up an organizaticn at
the central and state levels for the assessment of manpower situations,
forecasting manpower supply and demand etc.
The World Bank Publication (1997) 'China-Higher Education
Reform' reviewed the efforts of China for reform of higher education
over the last ten years in relation to the specification delineated in
'Decision on Education Reforms'- the document adopted by the
Chinese government in 1985. The reform agenda recommended are
the relationship between the universities and the state, changes in
university management, the financing of higher education, quality
improvement in instructional programmes and strategic priorities in
achieving reform goals.
The paper written by U.Antwerp (1998) in Economics of
Education Review entitled 'The demand for higher education in
Belgium' investigated the determinants of the spectacular growth in
higher education and enrolments in Belgium since 1953. In the
Belgian education system the enrolments are solely demand driven
and is not subject to supply constraints. The author used a demand
model integrating consumption and investment aspects and tested the
specification based on time series data between 1953 and 1992.
According to them the income and foregone earnings seem to be
driving emoluments.
The article entitled 'Perceived Rates of Return to Higher
Education in cyprus written by Maria Eliophoton (1997) estimated the
expected rates of return to higher education in Cyprus using logistic
regression analysis. The results of the estimates are supportive to
human capital theory. The mean rate of return to higher education is
considerably higher than that of secondary and other lower levels.
The perceived rate of return to higher education is found to have
significant effect in the pupils' educational intention.
The study group on Resource Mobilisation for education
constituted by the Central Ministry of Education in its report (1970)
reviewed the existing measures adopted by the state governments for
raising resources for education and suggested additional measures for
raising resources and using these resources and other facilities. If
suggested that educational cess should be levied in all the states and
tuition fee may be raised.
Planning and Utilisation of Human Resources
A survey on the utilisation of educated persons in Maharashtra
(1967) was conducted during the 111 plan period by the planning
department of Maharashtra in order to ascertain the utilisation pattern
of educated persons with a view to providing insight into the
relationship between the expansion of courses of study at the college
level and the pattern of employment of graduates belonging to
different disciplines. The study concluded that professional and
technical personnel generally find employment in occupation for
which they have been trained while in the case of general arts and
science graduates occupation is often unrelated to the subject of study.
A detailed study on the problem of utilisation of scientific and
technical manpower in India was made by P.R. Sengupta (1977).
According to him the distortions in the utilisation and employment
pattern of scientific and technical manpower is primarily due to the
undue expansion in educational facilities with a view to meet the
future demands for technical manpower in the development process of
the country.
Kamalesh Ray (1 977) who attempted to study the problems of
scientific manpower utilisation in India noticed that a high degree of
unemployment prevails among the graduates and post graduates in
science. The author contended that there is also a comparatively high
out turn of graduates in Mathematics apart from general arts and
science graduates, which is the outcome of the 'open door' policy of'
the government.
V.K.R.V. Rao (1965) in a seminar on 'Employment
Information and Manpower utilisation' viewed on the vital need for
linkage between utilisation of manpower and manpower planning
which links it up with the training programmes of manpower. For the
efficient planning of manpower it is imperative to have reasonably
accurate information about the existing status in terms of occupational
and industrial classifications, levels of training and interconnection
between these different levels. He emphasized that the educational
system of the country should be closely linked with manpower
requirements.
The planning and social welfare Department of Bangalore
( 1 968) conducted a study on the utilisation pattern of educated persons
in Mysore in order to analyse the utilisation pattern of educated
persons both at the graduate and post graduate levels in general
technical and professional fields of education. The study found that
the degree of underutilization of education was serious in the case of
general education.
R.C. Dutt (1977) who examined the under utilisation of
manpower in India suggested that there is the necessity for
emphasizing labour intensive technology. He pointed out that the
industries in the country have only a narrow base and therefore their
contribution to the solution for the problem of educated
unemployment is insignificant. The encouragement and development
of the agricultural sector will be a fruitful solution to the problem of
unemployment.
IAMR (1978) conducted a study on manpower utilisation in
the power sector with a view to examine the problem of job match
with respect to occupational categories such as executives, supervising
and skilled personnel etc. The study concluded that the power stations
were not having a rational basis for staffing pattern.
A study conducted by the Department of Economics and
Statistics (1983) on the Utilisation of Postgraduates in Medicine
aimed at evaluating the pattern of utilisation of specialists under
modem medicine. It revealed that one third of the post graduates were
not working in the field of their specialization. They suggested the
setting up of more special units to tackle the problem of under
utilisation of specialists.
Another study conducted by the planning Department of the
Government of Kerala (1969) to analyse the utilisation pattern of
educated persons aimed at providing information on the expansion
and starting of courses at the college level and the employability of
those courses. It studied the pattern of employment of graduates and
postgraduates in different faculties and concluded that there is severe
underutilisation of manpower.
'Educational Planning' authored by Frank.W.Banghart and
Albert Trull Junior (1973) is an attempt to synthesize new approaches
with the old approaches to the process of educational planning. It
reveals the general tools of analysis, evaluation and control which can
be used in educational planning process and especially related to the
planning of physical environments conclusive to learning.
In 'Planning educational systems for Economic growth'
Samuel Bowles (1975) opined that the maximization of hture national
income can be made possible through the optimal transformation of
the labour force from the uneducated to educated workers subject to
resource constraints imposed on educational sector. The author
combines theory and practice addressed to the problems of economic
efficiency.
K.S.Chalam (1993) in his work 'Educational policy for Human
Resources Development' attempted to conceptualize human resource
development in the context of Indian realities. He focussed attention
on innovation in the field of education and suggested alternatives.
In the World Bank Economic Review (1998) the article
entitled 'Evaluating Educational Reforms-Four cases in Developing
Countries contributed by Elizabeth M.King and Peter.F.Grazen
discusses the decentralisation reforms in four developing countries-
Latin America, El Salvador, Pakistan and Philippines. It studies the
government subsidy Programme in Pakistan and evaluates a pilot
study programme in the Philippines that uses different school inputs to
prove student enrolment and performance in primary schools.
In 'Economic Dimensions in Education' Martin.0. Donoghue
(1971) showed how education can have significant economic
consequences which can affect both the individual and social demand
for education. In his view the popular way of linking the economic
and educational patterns is to prepare projections of future
employment levels which can be used to derive estimates of the
associated educational levels.
In the article 'Demand supply imbalances of higher education
in Kerala Prabhakaran Nair (1985) showed that imbalance in demand
and supply imposes an increasing cost of higher education in Kerala
and that in turn imposes a serious strain on the state economy. The
author concludes that the demand for higher education in Kerala -
both general and technical - has been very high. He highlights the
problem of under employment. According to him the inability of the
government to absorb the unemployed as productive manpower
creates serious constraints and a heavy burden on the state economy in
view of the high cost of higher education.
In a major study of the efficient utilisation of educational
facilities in Gujarat, Lakdawala and Shah (1976) analysed the
efficiency at school and college levels of education. They provided a
regression analysis in support of the optimum size of enrolment of a
college as suggested by the Education Commission.
This study endeavoured to derive a U-shaped cost curve in education
at the school and college level.
An attempt to build programming model in education was
made by Panchamukhi (1969). This model recognized educational
values in the provision of education which is being ignored in the
attempts at maximising ecoriomic returns to education. The objective
function of the model is the minimisation of the cost of the supply of
education subject to the constraint that the educational level of the
country has an increasing trend. The model reminds of the danger of
over emphasising the economic aspects of education and ignoring the
other aspects.
Mark Blaug et a1 (1973) in their famous work, 'The utilisation
of educated Manpower in industry' investigated the influence of the
education of the labour force on the productivity and profitability of
the firm. According to them any exploitation of the firm's economic
performance that neglects the education element is less than
satisfactory. The underutilization of manpower in industry in terms
of the difference between required and attained years of education is
explained and in their view a relation between the jobs that people do
and the education they have received are significant determinants of
the level of business of the enterprise.
The Report of the Ashok Mitra Commission (1999) seeks to
make a link between 'democratic polity and educational process'.
Unlike the earlier commissions which concentrated on rationality and
management alone, the Ashok Mirtra Commission draws on the
premise of equity and excellence for the people of Kerala. The report
suggests a decentralization (both academic and administrative) of
universities. It calls for a revision of fees and at the same time
recommends for scholarships to deserving students. The commission
considered the extreme politicisation of Kerala education as a
significant challenge faced by Kerala and it suggests people's
education for creating a humane society capable of realising its
economic, cultural and intellectual potential.
Elizabeth.M.King and Peter.F.Orazem (1999) discuss
decentralization reforms in two developing countries - Latin America
and El Salvador. The study examines government subsidy programme
in Pakistan and evaluates a pilot study programme in the Philippines
that uses different school inputs to improve student enrolment and
performance in primary schools.
Bolina (1995) focusses on the gaps and deficiencies in the
system in the present form in the light of academic findings. The
author suggests a pilot programme based on the model of the German
dual system of vocational training on an experimental basis as it is
cost effective and equips the individual with a relatively high level of
skill.
'Economic Analysis for Educational Planning - Resource
allocation in Non Market Systems' edited by Karl.A.Fox (1972)
described several tools of economic theory which are highly relevant
to educational planning. The author utilised the tools of economic
theory, mathematical programming and systems analysis to clarify
important problems of resource allocation in educational systems.
Ramanujam (1969) justified the hnctional relationship of
manpower requirements with output in his work, 'Planning Models
for, Optimum allocation of Resources in Education'. He had done the
estimation of occupation - educated manpower requirements for India
for 1970 - 71, 75 - 76 and 1980 - 81 using the input output data for
the Indian Economy.
'Accelerator Theory in Education' by S.K. Moorthy and Thore
S.A.O. (1959) presented an analysis of the interdependence of the
educational system within itself. They developed a dynamic stodent
flow model which they called 'accelerator theory in education. They
showed that different levels of education are interdependent and the
growth in one level accelerates the growth in the other high level.
The Institute of Applied Manpower Research (1977) had
conducted studies for estimating manpower requirements using fixed
input coefficients. But since education itself is involving a greater
time lag the fixed coefficients approach is irrelevant.
'Economics of education and Education of an Economist'
authored by Mark Blaug (1987) focussed on the theoretical basis of
the economics of education namely human capital theory, screening
hypothesis etc. and addressed the educational priorities in developing
countries particularity the vexed question of educated unemployment.
C. Radhakrishnan (1985) projected the manpower
requirements for Kerala's economic development using the Parnes'
Mediterranean Regional Project (MRP) method to make manpower
projections and estimated the additional requirements of manpower by
occupational groups and educational categories respectively for the
period from 1980 - 8 1 to 1984 - 85.
Migration and Emigration of the educated
'Dynamics of Migration in Kerala- Dimensions, Differentials
and consequences,' is a comprehensive account which gives the
positive as well as negative effects of migration and emigration of
Keralites, the cost and financing of migration etc. According to the
authors outmigration has been on a declining trend. In recent years
the number of outmigrants is even lower than the number of return
migrants. The authors K.C. Zacharia et al (2000) conclude that
emigration will continue to increase for some more years but return
emigration would increase at a faster rate resulting in a period of net
negative international migration. In the view of the authors if
emigration is to be maintained at least for some more years
irrespective of the trend in return emigration, remittances are also
likely to increase for some more years.
In the book 'Migration of Knowledge Workers - the second
generation effects of India's brain drain, Binod Khadria (1999)
proposed various means to turn the exodus of talents or knowledge
workers into the advantage of the home country. He argued for
strengthening the capabilities of the nation in the fields of education
and health in order to restore the productivity of manpower in the
economy. The author took a positive approach to brain drain in
contrast to the predominantly negative approach to the situation.
The article 'Economics of brain drain' written by Rohinipati
Sinha (1968) highlighted the possible causes for the problem of brain
drain. According to the author the relative decline in the income
position of the high level manpower is responsible for the faster rate
of growth of emigration
In 'Brain Drain Again' B.Thornas (1967) contended that
United States is the world's largest exporter of physical capital, and
the largest importer of human capital. According to him there is a
strong presumption that the chief net importers of human capital are
deriving a national advantage while the net exporters particularly the
under developed countries are losers. According to him any
curtailment of the right of the individual to leave his country would be
contrary to the principles of free society.
The Committee on International Migration of talents (1984)
studied the impact of migration on the development process of India.
According to the committee the annual migration represents a
substantial portion of the Indian University graduates produced each
year. But migration and emigration of talents have not constrained
India's economic development. The Committee argues that the
surpluses of Indian talent which tend to push the productivity and
incomes of trained manpower down, will lead to migration only if the
productivity and incomes of the same manpower are relatively greater
in the developed countries.
P.R.Gopinathan Nair(1998) in his uork Dynamics of
Emigration from Kerala-Factors, Trends, Patterns and policies
observed that emigration of Keralities is the result of the activities of
the British who recruited indentured labour from different parts of
India for employment in British Plantations in Singapore, Malaya
Ceylon etc. According to him in Kerala which is ridden with chromic
problems of overpopulation, unemployment and economic
backwardness the large scale migration and exodus of people and
massive inflow of money should have brought substantial
improvements in the economy. But such expectations have not been
realized because consumption is the conspicuous exception in Kerala.
According to Subodh Mohanti (1995) one of the main
resources by which the industrially developed countries sustain their
pace of development is through their brain capital. In his work
'Scientific Communities and Brain Drain' he argued that the
economic dimension of brain drain is a symptomatic manifestation of
complex and deeper issues related to the structure, organisation and
dynamics of the scientific community in the context of its national and
international linkages. He concludes that while the economic and
material factors influence the outflow of scientists and technologists,
these are not the only factors that provide a complete explanation of
brain drain.
The foregoing review of selected literature on different aspects
of the economics of education reveals that most of the studies
concentrated on issues such as cost and returns of higher education,
dimension of unemployment etc. None of the studies endeavoured to
analyse the extent of the mismatch in the job market for the educated
and in that respect the present study is worthwhile.
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