What is the role of education in human capital formation

What is the role of education in human

capital formation? 

Answer: Education plays an important role in human capital formation as listed below: 

1. Education provides better knowledge and skills. A person with more knowledge and skills is generally more productive. 

2. An educated population is an asset, a resource. 

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

4. 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. 

5. Education enhances the cultural richness of a country and the efficiency of governance.