Managerial Economics: Impact of Education on Industrial Workers

This report examines the crucial role of education for industrial workers in developing countries. It highlights how educated workers enhance productivity, contribute to economic growth, and improve critical thinking and literacy levels. The report emphasizes the direct contribution of education to a country's GDP and overall community development. It also discusses how a skilled workforce can create a competitive advantage in the global economy. Ultimately, the report concludes that investing in the education of industrial workers is essential for developing countries to achieve sustainable economic progress and improve the standard of living for their citizens. Desklib provides access to similar solved assignments and past papers for students.

Running Head: REPORT 0
Managerial Economics Report
Importance of Industrial workers’ education
(Student Details:)
10/30/2018

Report 1
Contents
Does it Matter for Industrial Workers to be Educated in Developing Countries.......................2
Introduction................................................................................................................................2
Does it Matter for Industrial Workers to be Educated in Developing Countries.......................2
Productivity............................................................................................................................2
Economy................................................................................................................................2
Critical thinking and Literacy................................................................................................3
GDP (Gross domestic product) factor growth.......................................................................3
Community growth and development....................................................................................3
Competition............................................................................................................................3
Conclusion..................................................................................................................................3
References..................................................................................................................................4

Report 2
Does it Matter for Industrial Workers to be Educated in Developing
Countries
Introduction
The education, knowledge, qualification and training of developed country's industrial
workers play a major role in determining the country's economy condition well. Trained
industrial worker is an asset for the country as well as company because industrial workers
enhance company’s earning potential through developing, evaluating and refining their
capabilities timely. Knowledge updating and self-assessment is only possible when they are
well educated and aware of the further education, training modules and workshops in their
specified areas (Aggarwal, 2013).
Does it Matter for Industrial Workers to be Educated in Developing
Countries
Educated Industrial Workers are an asset for any industry as well as country either
developed or developing one. If the workers will know more about their specific job's
functions, or they well understand any specific industry, then they will become more valuable
to their employer (Hulten , 2018). Workers must learn advanced techniques, procedures or
innovative skills for higher wages. Usually, industrial workers expect their wages to be
increased at a higher percentage than the productivity they are providing to their
employers. This is an issue at both levels include industry as well as industrial worker’s end.
Thus, the problem can be addressed easily through educating the workers or hiring educated
workers by posting minimum eligibility criteria for the workers during hiring. Hence,
education matters a lot among industrial workers from the employer’s, countries’, and
workers’ point of view (The Economist, 2014). Here, some important factors are listed, that
explains importance of education in industrial workers of developing countries:
Productivity
Work efficiency and productivity depends upon workers capability of doing and
method he or she is adopting while working any particular work. Thus, for developing
countries, their industrial workers performance depends clearly upon their education level
and understanding about the specialised area (Radcliffe , 2018).

Report 3
Economy
A developing country's economy will become more productive when the proportion
of educated industrial workers will increase since qualified as well as educated workers can
perform tasks more effectively that is most required thing to develop country’s economy.
However, gaining a higher education will also carry an attached cost demanded by the
workers, yet that is helpful in growing nation’s lifestyle, and standard of living (Radcliffe ,
2018).
Critical thinking and Literacy
When people include industrial workers will be educated then their critical thinking as
well as literacy level will be improved. Additionally, an improved literacy level will address a
lot of social, economic and financial issues in community of any developing country (Hulten ,
2018).
GDP (Gross domestic product) factor growth
We all know this fact that GDP directly contributes in the overall growth of any
developing country which is the most concerned area while developing any nation. An
estimate from the Bureau of Labor Statistics Multifactor Productivity Program (referred as
BLSMPP) suggests that education of industrial workers is important for the overall economic
growth of the country (Leybovich , 2009).
Community growth and development
Education is essential for development as well as growth in any area of the country’s
development. The facts and figures shows that one human mind can make all development
goals and achievements possible, from health and agricultural innovations to innovative as
well as efficient private sector and public administration (Brown, Lauder, & Ashton, 2010).
In this way, all developing countries need to explore and utilize the potential of their human’s
mind to obtain the benefits fully. For doing so, education is the best tool among each and
every community from children, high-class urban public to rural and industrial workers.
Competition
All successful economies have a workforce capable of running industries at a
remarkable level, where a competitive benefit can be achieved over the other countries’
economies. Moreover, to achieve competitive success over other nations they must promote
industrial workers’ training by using tax breaks as well as write-offs, along with providing

Report 4
basic on-job as well as off-job facilities to trained workers to form a more skilled workforce
aiming to country overall development. Industries should focus on their workers’ education,
updated training, awareness about advanced technologies so that skilled professionals will be
more quickly trained for their specified work purpose (Brown, Lauder, & Ashton, 2010).
Conclusion
In Conclusion, countries their population educated through attending schools and
graduating from high schools are growing economically faster than developing countries with
less-educated or uneducated industrial workers. As we know that for any business, an
employee's intellectual capability is treated as an asset hence education of industrial workers
in developing countries contributes in increasing asset value. An economy in which industrial
employers treat their worker’s education as an asset will grow at fastest speed and will be
known as knowledge-based economy. Besides, few hours from whole spent in the classroom
by the workers can result in less hours spent working for a high wage. Moreover, all
employers pay high wages when they require a higher level of education to complete a job.
Thus, while earning of wages might be dropped in the short-time as an opportunity cost to
become educated, wages will expected to be higher in the forthcoming, once the workers will
be educated.

Report 5
References
Aggarwal, B. (2013). Worker Education Level is a Factor in Self-compliance with Dust-
preventive Methods among Small-scale Agate Industrial Workers. Journal of
Occupational Health, 55(4), 312-317.
Brown, P., Lauder, H., & Ashton, D. (2010). The global auction: The broken promises of
education, jobs, and incomes. Oxford: Oxford University Press.
Hulten , C. (2018, 01). The Importance of Education and Skill Development for Economic
Growth in the Information Era. Retrieved from University of Maryland and NBER :
https://www.nber.org/chapters/c13937.pdf
Leybovich , I. (2009, 10 13). The Importance of On-the-Job Education. Retrieved from
Thomas Net: https://news.thomasnet.com/imt/2009/10/13/importance-of-on-the-job-
education-training-and-school
Radcliffe , B. (2018, 03 23). How Education and Training Affect the Economy. Retrieved
from Investopedia: https://www.investopedia.com/articles/economics/09/education-
training-advantages.asp
The Economist. (2014, 07 08). The importance of a skilled 1%. Retrieved from The
Economist: https://www.economist.com/free-exchange/2014/07/08/the-importance-
of-a-skilled-1