Question

What is the role of education in human capital formation?

Answer 1

Knowledge has played a significant role in the development of mankind. Education, learning, training can be gained and spread through various means like music, books, movies, lectures, etc. It has already been proved that the businesses initiated by the educated and skilled individuals are always productive than that started by the unskilled person. Therefore, the income earned by the skilled person is more than the unskilled person, similarly, the contribution to the nation’s economy is more from the skilled person than from the latter.

• Investment in Education
• The most powerful way to improve and expand the fruitful workforce in the state is by nourishing and building up the education system. It is acknowledged as the root of human capital formation, that is the reason why the parents and also the government spend more on education. Few objectives why individual and state investment in education are
• To developing their future income
• Build manpower and enhance their technical skills, to improve workers productivity and therefore resulting in economic growth
• To control the population growth rate by reducing the birth rate and making maximum resources available per person
• Knowledge and education can be transferred to others, resulting in social advantages