Building Indiana: January/February 2013

Page 49

recent decades. Education appears to play an important role in worker productivity in all industrialized countries. The industrialized countries with the highest productivity levels tend to have highly educated work forces, and the convergence in productivity among these countries generally parallels that in educational attainment.” The report clearly outlines that education was not the only factor adding to productivity growth, but instead worked behind the scenes as a driving force behind the other elements. “Growth in factors other than education have also contributed to worker productivity. For example, increases in capital accounted for an estimated 40 percent of growth in worker productivity in the United States from 1948 to 1990. In addition to capital, factors as technical innovation, foreign trade, and government regulation can also affect productivity,” the report states. These additional growth factors stem from developments made through education. The two other aspects of the economy that are most directly correlated with the effects of education are unemployment and average household income. “Workers with higher educational attainment are unemployed less and earn more than workers with lower educational attainment,” the report states, “Over the past 30 years, a substantial proportion of high school graduates and dropouts were unemployed shortly after leaving high school, with dropouts generally facing a higher unemployment rate than graduates. In 1994, 30 percent of recent dropouts were

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