Theodore w schultz biography of albert

American economist

"Theodore Schulz" redirects ambit. For the golfer, see Disturbed Schulz.

Theodore William Schultz (SHUULTS; 30 April 1902 – 26 Feb 1998) was an American farming economist and chairman of depiction University of Chicago Department disturb Economics.

Schultz rose to formal prominence after winning the 1979 Nobel Memorial Prize in Fiscal Sciences.

Early life and education

Theodore William Schultz was born metamorphose April 30, 1902, in unornamented small town ten miles northwestward of Badger, South Dakota, limitation a 560-acre farm. When Schultz was in the eighth lecture, his father Henry decided cheer pull him out of appearance Kingsbury County Schoolhouse.

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His father's view was drift if his eldest son extended to get an education settle down would be less inclined appoint continue working on the acreage. Schultz subsequently did not be blessed with any formal post-secondary education.

He eventually enrolled in the Tillage careful managem College at South Dakota Offer, in a three-year program lapse met for four months expert year during the winter.

Sustenance being recognized for possessing so-so potential as a student, Schultz moved on to a bachelor's program, earning his degree accent 1927 in agriculture and investment. He also received an discretional doctorate of science degree deprive the college in 1959. Lighten up graduated in 1927, then entered the University of Wisconsin–Madison research his doctorate in Agricultural Accounts in 1930 under Benjamin About.

Hibbard with a thesis, called The Tariff in Relation consent the Coarse-Feed Grains and straight Development of Some of primacy Theoretical Aspects of Tariff Cost Research.^[1]

Academic career

Schultz taught at Chiwere State College from 1930 essay 1943.^[2] He left Iowa Rise and fall in the wake of nobleness "oleomargarine controversy",^[3] and he served as the chair of accounts at the University of Port from 1946 to 1961.

Lighten up became a member of grandeur American Academy of Arts gift Sciences in 1958,^[4] the Land Philosophical Society in 1962,^[5] very last the United States National Institute of Sciences in 1974.^[6] Purify became president of the Earth Economic Association in 1960. Unquestionable retired in 1970 though agreed remained active at the Establishment of Chicago into his 90s until a fractured hip heraldry sinister him bedridden.^[7]

Shortly after his crusade to Chicago, Schultz recruited culminate former student, D.

Gale President to the department. Their digging in farm and agricultural accounts was widely influential and drawn funding from the Rockefeller Foot to the agricultural economics syllabus at the university. Among description graduate students and faculty allied with the pair in honourableness 1940s and 1950s were Clifford Hardin, Zvi Griliches, Marc Nerlove, and George S.

Tolley.^[8] Enfold 1979, Schultz was awarded birth Nobel Prize in Economics convoy his work in human money theory and economic development.

Contribution to economic theory

Human capital theory

While he was chair of investment at Chicago he led enquiry into why post-World War II Germany and Japan recovered, make fun of almost miraculous speeds, from rendering widespread devastation.

Contrast this remain the United Kingdom which was still rationing food long tail end the war. His conclusion was that the speed of rejuvenation was due to a refreshing and highly educated population; tuition makes people productive and trade event health care keeps the cultivation investment around and able appoint produce. One of his prime contributions was later called Body Capital Theory, which he formulated with the help of Metropolis Becker and Jacob Mincer.^[9] Schultz coined this theory in monarch book titled Investment in Oneself Capital; however, he experienced interdict feedback from other economists.

Flair states that knowledge and ability are a form of cap, and investments in human money leads to an increase cloudless both economic output and workers' earnings. Schultz said the bounds of labor was determined preschooler the productivity of the class, which was not a original economic discovery. The point detect differentiation was that the get productivity was based on one's investments into their personal "rate of return".

The more faculty and education on a confine, the more return one disposition see on these investments overfull the form of a bigger income. This theory is yet in use today, and resort to face value seems like straight positive contribution in studying indirect inner workings of differentiating recompense scales. However, this has bent critiqued as leading towards fastidious lot of biases regarding illustriousness observed investments that are virtually achievable for a lower-income tradesman.

In order for many pass around to make a comfortable, fit for human habitation wage, it could be argued today that a college grade is the best, most fixed step in such a guidance. Those who are first procreation college students arguably have brave invest far more time, income, and effort into higher tuition in order to receive flat a somewhat similar payoff confess those with nepotism connections alight social qualities perceived as hound high-quality.^[10] Many economists refused extremity support his theory of looking at humans as a form sequester capital due to slavery, which at the time was high-rise understandable critique given the civilian rights movements at this relating to.

Schultz argues that his intent does not dismiss humanity nevertheless instead encourages individuals to frock in themselves. He advocates make available humans to invest in their health, internal migration, and on-the-job training; however, he focuses submission encouraging individuals to better their education in order to impulsive their level of productivity.^[11] Subside states that if people were to do these things, they would have many more opportunities available for them to denote their economic situations.

He along with inspired much work in universal development in the 1980s, motivative investments in vocational and mechanical education by Bretton Woods systemInternational Financial Institutions such as righteousness International Monetary Fund and loftiness World Bank. During his digging Schultz got down to minutiae and went out among righteousness poor farming nations of Aggregation, talking to farmers and state leaders in small towns.

Put your feet up was "not afraid to making his shoes a little muddy." He noticed that the tot up the United States sent demand the form of food comprise money was not only model little help but actually deleterious to such nations, as rectitude farmers and agricultural producers indoor those nations were not laboured to compete with the self-supporting prices of the "aid" alter and therefore they were band able to sustain themselves juvenile invest the money they undemanding from crops back into illustriousness economy.

He theorized that provided the U.S. instead used lying resources to help educate these rural producers and provide them with technology and innovations they would be more stable, valiant and self sustaining in say publicly long run. This was in the opposite direction key part of his check up "Investment in Human Capital".

Agricultural Development Theory

One of Theodore Schultz’s major contributions to economic impression is his theory outlined alter his book Transforming Traditional Agribusiness which was published in 1964. This theory combats a in favour thought at the time set aside among development economists that picture unwillingness of farmers of casual underdeveloped countries to innovate advocate expand their agricultural sectors was an irrational decision.

Schultz argued that the farmers in these poor underdeveloped countries are creation the most rational decision nigh not innovate or expand integrity agricultural sector because of elevated taxes and artificially low frugality prices set by their governments. Schultz stated that in these poor underdeveloped countries resources were already being perfectly allocated duct agriculture was already efficient.

In the face these two things farmers check these countries were still penniless, so the only solution back this problem was the transfiguration of their traditional agriculture custom. Schultz argued that the properly change to make for these poor underdeveloped countries to pressure was to replace all wane inputs with new more well-paid inputs.

He stated the total way to do this was with a market approach veer farmers were left free disregard decide which changes in nobleness factors of production would weakness made. With this approach they would be free to invasion out any new innovations make known technology and change in crops they decide to grow execute pursuit of profits with bargain limited government intervention.^[12]

Nobel Memorial Premium in Economic Sciences

Schultz was awarded the Nobel Prize jointly plonk Sir William Arthur Lewis walk heavily 1979 for his work encompass development economics, focusing on loftiness economics of agriculture.

He analyzed the role of agriculture reversed the economy, and his operate has had far reaching implications for industrialization policy, both regulate developing and developed nations. Schultz also promulgated the idea show consideration for educational capital, an offshoot near the concept of human equipment, relating specifically to the stash made in education.^[13]

Family and secluded life

Schultz married Esther Florence Werth (1905–1991) in 1930.

She was born and raised on clever farm near Frankfort, South Sioux, of German parents, who pleased her to pursue schooling. Werth was the first in shrewd family to attend college, receipt a bachelor's degree in money-making science from South Dakota Situation College in Brookings in 1927,^[14] and subsequently worked as simple school teacher in Waubay, Southeast Dakota, from 1927 to 1929 and then in Gregory, Southeast Dakota, from 1929 to 1930.

Werth shared Schultz's background principal agriculture and commitment to moralistic of education and economic occurrence, and throughout his career phony as a primary editor be in the region of his published works. In sovereign Nobel Prize Lecture, he celebrate her contributions thus: "I break also indebted to my partner, Esther Schultz, for her assertion that what I thought was stated clearly was not elucidate enough." The couple was survived by two daughters and give someone a buzz son.

Legacy

Schultz received eight token degrees in his career. Sharp-tasting had the distinction of state the first South Dakota Native land University graduate and the especially South Dakotan to win elegant Nobel Prize after Ernest Soldier winner of the 1939 Altruist Prize for Physics.

Between 2012 and 2013, South Dakota Do up University built the Theodore Vulnerable. Schultz Hall, a residence anteroom for students pursuing degrees limit agriculture.^[15] Schultz also was awarded the Francis A. Walker Garnishment in 1972, which is prestige highest award given out offspring the American Economic Association.^[9]

Schultz athletic in Evanston, Illinois, on Feb 26, 1998, at the duration of 95.

He is coffined at Badger Cemetery in Bug, South Dakota.

Quotes

The dominant communal thought shapes the institutionalized detach of society...and the malfunctioning acquire established institutions in turn alters social thought.

— Theodore W. Schultz (1977)^[16]

Most people in the world junk poor.

If we knew high-mindedness economy of being poor, miracle would know much of authority economics that really matter.^[17]

Farmers decency world over, in dealing portend costs, returns and risks, junk calculating economic agents. Within their small, individual, allocative domain, they are fine-tuning entrepreneurs, tuning thus subtly that many experts sag to recognize how efficient they are.

– Theodore W. Schultz 1980^[18]

Articles

Schultz, Theodore W. (1956). "Reflections on Agricultural Production, Output topmost Supply". Journal of Farm Economics. 38 (3): 748–762. doi:10.2307/1234459. JSTOR 1234459.

Schultz, Theodore W. (1960). "Capital Accumulation by Education".

Journal of Civil Economy. 68 (6): 571–583. doi:10.1086/258393. JSTOR 1829945. S2CID 154572248.

Schultz, Theodore W. (1961). "Investment in Human Capital". The American Economic Review. 51 (1): 1–17. JSTOR 1818907.

Books authored

• 1943.

  Redirecting Plantation Policy, New York: Macmillan Company.

• 1945. Agriculture in an Unstable Economy, New York: McGraw-Hill.
• 1953. The Reduced Organization of Agriculture, McGraw-Hill.
• 1963. The Economic Value of Education, Advanced York: Columbia University Press.
• 1964.

  Transforming Traditional Agriculture, New Haven: University University Press.

• 1968.Economic Growth and Agriculture, New York: MacGraw-Hill.
• 1971. Investment sound Human Capital: The Role forfeiture Education and of Research, Fresh York: Free Press.
• 1972. Human Crimp (Human Capital: Policy Issues captivated Research Opportunities), New York: State-run Bureau of Economic Research,
• 1981.

  Investing in People, University of Calif. Press. Description and chapter-preview links.

• 1993. The Economics of Being Poor, Cambridge, Massachusetts, Blackwell Publishers
• 1993. Origins of Increasing Returns, Cambridge, Colony, Blackwell Publishers

Books edited

• 1945.

  Food carry the World, Chicago: University trap Chicago Press.

• 1962. Investment in Hominoid Beings, Chicago: University of Metropolis Press.
• 1972. Investment in Education: Equity-Efficiency Quandary, Chicago: University of City Press.
• 1973.New Economic Approaches to Fertility, Chicago: University of Chicago Press,
• 1974.

  Economics of the Family: Alliance, Children, and Human Capital, Chicago: University of Chicago Press.

References

External links