Education And Development. Ideas For Institutional Reform

The economic literature tends to bring together development theory and institutional economics by emphasizing the institutions role in explaining economic performance differences among different countries. New institutionalism could also be seen as a very useful exercise to link education sector and economic performance. As we will underline in this paper, more education does not mean necessarily economic performance. Education could positively influence economic growth only if it is correlated with the individuals' preferences and labor market requirements. We will emphasize some institutional changes in order to bring more flexibility and responsibility in education sector in accordance to labor market signals.