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What is the role of education in human capital formation?
Human capital refers to the stock of skill and productive knowledge embodied in a population. Proper education and training enable the formation of this human capital. An educated population is an asset, a resource. In contrast to the uneducated and untrained, educated individuals make efficient use of the available resources and opportunities. Education and skill are the major determinants of the earning of any individual in the market. Education enhances the quantity and quality of individual productivity, which in turn adds to the growth of the economy. Aware of the benefits of education, educated persons help in its perpetuation. The advantages of an educated population spread to even those who themselves are not educated. Hence, educated people benefit the society as a whole. Thus, education plays the role of a catalyst in transforming a human being into a positive asset and a precious national resource.
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