EDUCATION AND ECONOMICS INTERLINKAGE: A BOOK REVIEW ON INCENTIVES

Abstract

Education is interlinked with economic development in numerous ways such as human capital formation, innovation and technological advancement, improved employability, reduction in Poverty and income disparities, efficient use of resources by educated individuals, improved Health and Social Well-being, and better civic responsibility. Conversely, economic incentives work wonders for improving educational outcomes by motivating teachers and learners. This study is a qualitative book review which shows how incentives work in education. Author uses primary data in the form of a book titled “Freakonomics” by Steven. D. Levitt and Stephen J. Dubner. The review is focused on a single chapter on incentives which shows how education is often influenced by incentives. In psychology, we learnt about intrinsic and extrinsic motivation and incentives relate to latter. Not all children will be intrinsically motivated, nor will all teachers teach merely to transmit knowledge. The significance of the study is creating awareness regarding the fact that true purpose of education often remains elusive.