ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Human capital is the improvement in labor created by the education and knowledge embodied in the workforce.

Detailed explanation-2: -The role of education in human capital formation are as follows: An educated society facilitate better development program than an illiterate one. Education improves productivity and prosperity, and also improve enriched life experience.

Detailed explanation-3: -Human capital and human development are interrelated concepts but they are not identical. While human capital refers to the stock of a nation’s human skills and expertise at a particular point of time human development refers to holistic development and well being of a nation’s human capital.

Detailed explanation-4: -The dominant paradigm in the economics of education is Human Capital Theory, which suggests that education and training are investments that make individuals genuinely more productive. Individuals who are more productive will, according to this theory, also have higher earnings and be more employable.