Question

What are the major source of human capital formation?

Answer 1

• Study programmes for adults

Other than formal education at the primary, secondary and University levels, the Government and NGOs organise study programmes for adults to make them proficient in their work areas. This enhances their productivity, serving bas a source of human capital formation.

• Expenditure on Information

Information relating to job markets and educational institutions offering specialized skills is an important determinant of skill formation. It enables people to actualise their productive potential. Accordingly,expenditure on information is another determinant of human capital formation.