Question

explain the role of education in human captial formation

Answer 1

Human capital refers to production skills embodied in workers. According to standard economics, human capital plays an important role in the economic process; on the one hand, human capital is as important as machines and technology in the production process; on the other hand, higher human capital implies higher labor productivity and higher incomes for workers; higher human capital also requires higher schooling years, which give workers the basic capacity to learn skills.

Answer 2

By Providing education and health facilities to the people, we can increase the quality of production and providing skills to people.This is called human capital formation. So, if we provide education to people then we increase the quality of people which leads to human capital formation.