Question

What is the role of education in human capital formation?
Or
Explain the role of education in human capital formation.​

Answer 1

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NCERT 9th Grade (Economics)

Role of Education in Human Capital Formation

• Education helps individual to make better use available economic opportunities.

• Education and skill are major determinants of the earnings of an individual in the market.

• Education is an important input for growth.

• Education opens a new horizon, provides new aspiration and develops the value of life.

• Education contributes to the growth of the society.

• Education enhances national income, cultural richness and increases the efficiency of governance.

Answer 2

Answer:

Education is the most important component of human resource development. →Proper education and training enable the formation of this human capital. An educated population is an asset, a resource.

→ Education enhances the quantity and quality of individual productivity, which in turn adds to the growth of the economy.

→It develops personality and sense of national consciousness among the people which are important for rapid economic growth.  

 -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.