Formal Education in Romania and Economic Growth

Abstract

The present paper analyzes the way in which the formal education, acquired especially through the learning system, can influence the Romania's stock of human capital. Unfortunately, in our country this type of education is free of charge at almost all the levels, fact that diminishes the marginal utility and the value that a person gives to each additional school year. Moreover, the resource allocation is made according to principles hard to identify. The primary and the secondary education has been neglected long time because it was wrongly considered that a greater importance given to the tertiary education would increase the human capital stock.

Keywords: formal education, learning system, human capital, level of development

JEL Classification: I20, I30