Theodore Schultz
Encyclopedia
Theodore William Schultz (April 30, 1902 February 26, 1998) was the 1979 winner (jointly with William Arthur Lewis
) of the Nobel Memorial Prize in Economic Sciences
.
He was born in Arlington, South Dakota
, enrolled in South Dakota State College
in 1921 to study agriculture
, graduated in 1927, then entered the University of Wisconsin–Madison
earning his doctorate in Agricultural Economics in 1930.
He taught at Iowa State College
from 1930 to 1943, and then moved to the University of Chicago
. He later became president of the American Economic Association
. He died in Evanston, Illinois
in 1998.
, focusing on the economics of agriculture
. He analysed the role of agriculture within the economy, and his work has had far reaching implications on industrialisation
policy, both in developing and developed nations. Schultz also promulgated the idea of educational capital
, an offshoot of the concept of human capital
, relating specifically to the investments made in education.
Schultz researched into why post-World War II Germany
and Japan
recovered, at almost miraculous speeds from the widespread devastation. Contrast this with the United Kingdom
which was still rationing food long after the war. His conclusion was that the speed of recovery was due to a healthy and highly educated population; education makes people productive and good healthcare keeps the education investment around and able to produce. One of his main contributions was later called Human Capital Theory, and inspired a lot of work in international development
in the 1980s, motivating investments in vocational and technical education by Bretton Woods system
International Financial Institutions
such as the International Monetary Fund
and the World Bank
.
-- Theodore W. Schultz (1977)
Most people in the world are poor. If we knew the economy of being poor, we would know much of the economics that really matter.
William Arthur Lewis
Sir William Arthur Lewis was a Saint Lucian economist well known for his contributions in the field of economic development...
) of the Nobel Memorial Prize in Economic Sciences
Nobel Memorial Prize in Economic Sciences
The Nobel Memorial Prize in Economic Sciences, commonly referred to as the Nobel Prize in Economics, but officially the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel , is an award for outstanding contributions to the field of economics, generally regarded as one of the...
.
He was born in Arlington, South Dakota
Arlington, South Dakota
Arlington is a city in Brookings and Kingsbury counties in the U.S. state of South Dakota. The population was 915 at the 2010 census.-History:...
, enrolled in South Dakota State College
South Dakota State University
South Dakota State University is the largest university in the U.S. state of South Dakota, located in Brookings. A public land-grant university and sun grant college, founded under the provisions of the 1862 Morrill Act, SDSU offers programs of study required by, or harmonious to, this Act...
in 1921 to study agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
, graduated in 1927, then entered the University of Wisconsin–Madison
University of Wisconsin–Madison
The University of Wisconsin–Madison is a public research university located in Madison, Wisconsin, United States. Founded in 1848, UW–Madison is the flagship campus of the University of Wisconsin System. It became a land-grant institution in 1866...
earning his doctorate in Agricultural Economics in 1930.
He taught at Iowa State College
Iowa State University
Iowa State University of Science and Technology, more commonly known as Iowa State University , is a public land-grant and space-grant research university located in Ames, Iowa, United States. Iowa State has produced astronauts, scientists, and Nobel and Pulitzer Prize winners, along with a host of...
from 1930 to 1943, and then moved to the University of Chicago
University of Chicago
The University of Chicago is a private research university in Chicago, Illinois, USA. It was founded by the American Baptist Education Society with a donation from oil magnate and philanthropist John D. Rockefeller and incorporated in 1890...
. He later became president of the American Economic Association
American Economic Association
The American Economic Association, or AEA, is a learned society in the field of economics, headquartered in Nashville, Tennessee. It publishes one of the most prestigious academic journals in economics: the American Economic Review...
. He died in Evanston, Illinois
Evanston, Illinois
Evanston is a suburban municipality in Cook County, Illinois 12 miles north of downtown Chicago, bordering Chicago to the south, Skokie to the west, and Wilmette to the north, with an estimated population of 74,360 as of 2003. It is one of the North Shore communities that adjoin Lake Michigan...
in 1998.
Contributions
Schultz was awarded the Nobel Prize for his work in development economicsDevelopment economics
Development Economics is a branch of economics which deals with economic aspects of the development process in low-income countries. Its focus is not only on methods of promoting economic growth and structural change but also on improving the potential for the mass of the population, for example,...
, focusing on the economics of agriculture
Agricultural economics
Agricultural economics originally applied the principles of economics to the production of crops and livestock — a discipline known as agronomics. Agronomics was a branch of economics that specifically dealt with land usage. It focused on maximizing the crop yield while maintaining a good soil...
. He analysed the role of agriculture within the economy, and his work has had far reaching implications on industrialisation
Industrialisation
Industrialization is the process of social and economic change that transforms a human group from an agrarian society into an industrial one...
policy, both in developing and developed nations. Schultz also promulgated the idea of educational capital
Educational capital
Educational capital refers to educational goods that are converted into commodities to be bought, sold, withheld, traded, consumed, and profited from in the educational system. Educational capital can be utilized to produce or reproduce inequality, and it can also serve as a leveling mechanism...
, an offshoot of the concept of human capital
Human capital
Human capitalis the stock of competencies, knowledge and personality attributes embodied in the ability to perform labor so as to produce economic value. It is the attributes gained by a worker through education and experience...
, relating specifically to the investments made in education.
Schultz researched into why post-World War II Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
and Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
recovered, at almost miraculous speeds from the widespread devastation. Contrast this with the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
which was still rationing food long after the war. His conclusion was that the speed of recovery was due to a healthy and highly educated population; education makes people productive and good healthcare keeps the education investment around and able to produce. One of his main contributions was later called Human Capital Theory, and inspired a lot of work in international development
International development
International development or global development is a concept that lacks a universally accepted definition, but it is most used in a holistic and multi-disciplinary context of human development — the development of greater quality of life for humans...
in the 1980s, motivating investments in vocational and technical education by Bretton Woods system
Bretton Woods system
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid 20th century...
International Financial Institutions
International financial institutions
International financial institutions are financial institutions that have been established by more than one country, and hence are subjects of international law. Their owners or shareholders are generally national governments, although other international institutions and other organisations...
such as the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
and the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
.
Quotes
The dominant social thought shapes the institutionalized order of society...and the malfunctioning of established institutions in turn alters social thought.-- Theodore W. Schultz (1977)
Most people in the world are poor. If we knew the economy of being poor, we would know much of the economics that really matter.
Books authored
- 1943. Redirecting Farm Policy, New York: Macmillan Company.
- 1945. Agriculture in an Unstable Economy, New York: McGraw-Hill.
- 1953. The Economic Organization of Agriculture, McGraw-Hill.
- 1963. The Economic Value of Education, New York: Columbia University Press.
- 1964. Transforming Traditional Agriculture, New Haven: Yale University Press.
- 1968.Economic Growth and Agriculture, New York: MacGraw-Hill.
- 1971. Investment in Human Capital: The Role of Education and of Research, New York: Free Press.
- 1972. Human Resources (Human Capital: Policy Issues and Research Opportunities), New York: National Bureau of Economic Research,
- 1981. Investing in People, University of California Press. Description and chapter-preview links.
- 1993. The Economics of Being Poor, Cambridge, Massachusetts, Blackwell Publishers
Books edited
- 1945. Food for the World, Chicago: University of Chicago Press.
- 1962. Investment in Human Beings, Chicago: University of Chicago Press.
- 1972. Investment in Education: Equity-Efficiency Quandary, Chicago: University of Chicago Press.
- 1973.New Economic Approaches to Fertility, Chicago: University of Chicago Press,
- 1974. Economics of the Family: Marriage, Children, and Human Capital, Chicago: University of Chicago Press.