What is the role of education in human capital formation?
The economy of any country is the basis of the development and progress of that country. To make a developed country, it is very important for the people here to be educated, without education it is not possible because the person who is educated has experience and knowledge through which he can do his work with great skill. In this article we are going to talk about what is the role of education in human capital formation? In detail.
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Meaning of human capital
Capital is called the base through which income is earned and the country’s income is created by the citizens of the country, hence they are called human capital. An educated person can also get good behavior which also affects the capital of the country. Humans earn capital through their work so that the country remains on the path of development.
If the citizens of the country are unemployed, uneducated, incompetent, unhealthy, then it becomes difficult for that country to develop. As everyone knows that education is given great importance since childhood because only an educated person is able to take right decisions, do things and walk with the world. Human resource is what makes a country from a developing to a developed country.
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Our parents send us to school since childhood so that we do not have to face difficulties due to economic problems and illiteracy when we grow up. An educated person has the power called knowledge, due to which he is able to fulfill his essential things.
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What is the role of education in human capital formation?
Talking about the importance of education in human capital (human resource) formation, education plays a very important role. An educated person is much wiser than an uneducated person because he has knowledge of many things, due to which he also has a self-confidence and is aware of the sources of income.
Education gives a person a power, through which he is able to do many things like reading and writing, easily learning modern machines, etc. If there is lack of education in a country, development is not possible there, an uneducated mass society is unable to do many things, which affects the speed of development of that country. The salary of the educated class is also higher than that of the common people, that is why education has been called the main basis of human capital.
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Why education is important in human capital formation?
This hypothesis becomes clear if we look into the history of civilizations. Badly battered, devastated and ruined during the second world war.
Germany and Japan were virtually disintegrated and its economy reduced to a melon, but with organizational skills, unique talent, strength and indomitable courage and spirit, their people showed a significant transformation within a short period.
They not only revived their economy but also sent their surplus produce to many countries. He accomplished all this by making optimum use of his precious and educated manpower.
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