Endogenous growth theory and role of education

Endogenous growth theory is one or the mainstream economics approaches to modeling economic growth. Education is the prime engine of economic growth. In the neo-classical model there is no explicit role for education (at any level) and no externalities-capital owners and workers are independent inputs and each is fully rewarded for their contributions to output. In neoclassical growth models, the long-run rate of growth is exogenously determined by assuming a savings rate (the Solow model) or a rate of technical progress. This does not explain the origin of growth, which makes the neo-classical model appear very unrealistic.