Question

3. What is the role of education in human capital formation?

Answer 1

Education plays a very important role in human capital formation for the following reasons:

• An educated human can be considered an asset for the economy and not a liability.
• Education can help an individual make better use of economic opportunities. It helps in enhancing the national income, cultural richness and increases the efficiency of the Government.
• It enhances individual productivity in terms of quality and quantity.
• Because being educated can help the economic status of an individual, it also develops the consciousness towards society.
• An educated person is also aware of health and hygiene, and it will ultimately result in better health of the people of a country.