Here are the key lessons Holistic Wealth Planners can draw from Education, Growth and Income Inequality by Coen Teulings and Thijs van Rens:
1. Human Capital Drives Growth—But With Diminishing Returns
The study confirms that education (a proxy for human capital) boosts GDP, but each additional year of education contributes less than the last. In holistic wealth planning, this means investing in continuous learning should prioritise depth, relevance, and adaptability over volume—clients should pursue the right kind of education aligned to their life goals, not just more credentials.
2. Skill Bias and Inequality Are Two Sides of the Same Coin
Technological progress disproportionately benefits highly educated workers, widening income gaps unless education levels rise in tandem. For planners, this highlights the need to balance clients’ financial and human capital strategies—pairing digital upskilling with financial resilience to prevent clients being left behind in a changing economy.
3. Structural Trustworthiness Requires Human-Centred Systems
The paper’s finding that “imperfect substitution between worker types” reduces returns mirrors the structural inefficiency in markets that treat people as interchangeable assets. Holistic planners can counter this by valuing individuality and emotional intelligence as capital assets, helping clients identify unique strengths rather than conforming to economic averages.
4. Equity in Opportunity Matters More Than Equality of Outcome
Rising education levels reduce income inequality by compressing wage differentials, but only when access is broad and inclusive. This reinforces the planner’s role as a social architect, supporting initiatives that democratise access to learning, entrepreneurship, and financial literacy.
5. The GAME Plan Connection
The model’s cyclical balance between growth (GDP) and inequality (Gini) reflects the GAME Plan principle of dynamic equilibrium:
- Goals: Lifelong learning and meaningful contribution
- Actions: Investing time and energy in personal growth
- Means: Building adaptable skillsets and community capital
- Execution: Translating learning into sustainable livelihoods
Holistic Wealth Planners can use this to help clients design education–work–income cycles that promote both personal fulfilment and societal wellbeing.
6. Key Takeaway
“Tinbergen’s race between education and technology and Mincer’s earnings function rule the world.”
In today’s context: the race between human growth and machine intelligence defines the future of wealth. The planners who help clients stay ahead by integrating human, social, and intellectual capital will create truly sustainable prosperity.
Academy of Life Planning 