What is the Role of education in human Capital formation
Meaning of human capital?
Individual Skills: Specific resources specific to the skills and abilities of each employee.
Capital of the human economy: The total economic size of the population, as measured by national education standards.
The role of education in human resource development
Knowledge has played a vital role in human evolution. Education, research, and instruction can be obtained and disseminated through various means such as music, novels, movies, seminars, and so on. It has already been shown that firm-started firms often make more profit than those started by an unskilled person. Therefore, the income of a skilled person is greater than that of those who do not have the skills. In the same way, the contribution to the national economy comes from a more talented person than the latest.
The role of education in human resource development is as follows:
Education enables individuals to take care of themselves and others, to grow, and to enrich life.
An educated society encourages greater progress than an illiterate person.
Education, in addition to rising government output, increases national and other cultural resources.
Education inspires new hopes and vision for young people.
It not only contributes to human growth but also to the development of society as a whole.
Factors that determine a person’s strength
- Emotional intelligence
- Personality – hard work, harmony in the office
- Habits and personality traits
- Creation. Ability to innovate new processes / products.
- Fame and image of a human product.
- Skills and qualifications
- Levels of education
- Work experience
- Communication skills – communication
- Significance of population
Importance of human capital
- Unemployment structure
People with unstable workers in today’s employers are unable to find work. The rapid industrialization has left many craftsmen unable to survive in a very different labor market, which is a major problem in today’s economy.
- Level of employment
In today’s economy, there is a growing gap between low-paying, low-paying contract jobs. Advanced jobs and creativity provide more self-employment or more effective
- Economic growth and productivity
Long-term economic development depends largely on labor development. Increased labor productivity and economic development are aided by skilled, thoughtful, and creative workers.
- People’s airplane
With globalization and increased workflow, professional workers are now moving from low-income countries to high-income countries. This will have a negative impact on developing countries by making them lose the best human resources.
- Limited resources
Economic development in resource-rich countries such as Japan, Taiwan and South East Asia. Count on highly trained and skilled workers to deliver the amount of material used during the production process.
- Health Investment
A healthy person can provide more employees than an unhealthy person. Education encourages knowledge to grow. Knowledge enables one to get better job opportunities with a better salary, which is used for healthy eating. Healthy eating contributes to good health. In addition, it helps to create a healthy living environment that makes sense. Access to medicines, clean drinking water and proper sanitation are essential for a healthy lifestyle.
- Providing Investment in Training
Different types of jobs require different skills to pursue. An educated person can make himself a career seeker by getting on-the-job training.
Investing in migration: Everyone needs a job. People are migrating to seek higher-paying jobs from their localities. Unemployment and better job opportunities are the reasons for urban migration to rural India. Transportation costs, living costs and psychological costs of new social and cultural settings are included in the cost of migration. Thus, the cost of migration becomes a source of human capital.
- Investing for Information
Information is an essential element of performance. Properly provided information builds intelligence. People spend a lot of time and money to get information related to their job, community, lifestyle, etc. This information helps to make informed decisions about employees’ investments and their use. Therefore, spending money on information is also a source of staff building.
Role of Human Capital
- Fair Use of Money
Increased productivity of tangible money depends largely on human capital. Educated, skilled, knowledgeable and healthy people spend money and increase productivity.
Innovation, Innovation and Development: Creating human capital can create innovations to bring innovation to the work for ease. Education also creates opportunities for employees to experience new technological advances.
- Quality of Life Improvement
The construction of the human capital raises the age of human life. Educated and healthy people can live healthy lives.
- Population Growth Management
It has been observed by many studies that educated people have smaller families, compared to the illiterate. Therefore, it is believed that education can regulate the growth rate of the population.
The Economic Impact of Economic Growth
When it comes to economic development, human power is a key factor in the growth and expansion of the multi-stakeholder economy. This offers the best benefits of these countries in terms of having the best performance and life
Human capital construction increases productivity and contributes to economic growth by increasing GDP.
Professional and experienced employees can make the most of the tools they have.
Technological Development, Innovation, and Innovation
It can lead to further development of production and related processes.
More productivity comes from new strategies.
It also promotes the opportunity to adapt to emerging developments.
Quality of life is improved
Wealth and prestige are indicators of quality of life.
Earnings and health are affected by education, skills development, and other factors.
Capacity building strengthens the quality of life of the masses by increasing these skills.
Population growth is leading to economic growth.
Physical Capital production is high
Human capital increases job creation.
Skilled workers can make the most of visual resources (such as machinery).
High Level of Equality and Partnership
Human resource development promotes better employment by improving labor productivity.
As a result, there is a strong level of staff participation.
The Difference Between Physical and Human Money
Physical and Human Capital – both forms of investment are the result of investment decisions based on personal knowledge. Physical capital formation is an economic and technical process that is proprietary. Men, women and children can use different forms of education and health care.
Teachers and community mobilizers have taken decisions about staff investment even at the highest level in order to take sustainable transformation measures. In addition, population growth depends on the development of the population already built on school education.
The structure of the human economy depends on both the social process and the formulation of a conscious policy in line with the socio-economic status and costs of the state and the people for which the capitalization process is concerned.
A person’s money is an intangible concept built into his body and mind. On the other hand, real money is recognizable and can be easily bought or sold on the market as an asset. In addition, real money can be made with the help of human money. Everything is getting old with time. Both physical and emotional costs are declining with age.
Indian Expenditure on Education
These government spending is expressed in two ways: as a ‘total government expenditure’ and as a percentage of Gross Domestic Product (GDP). During 1952-2014, education expenditures increased from 7.92 to 15.7 and from 0.64 to 4.13 as a percentage of GDP.
According to the Union Budget for 2021-22, spending on education has been Rs 93,224 crore, Rs 54,873 crore for schooling and learning and Rs 38,350 crore for higher education.
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People’s Economy and Human Development
The two terms ‘human capital’ and ‘human development’ – sound similar but there is a clear difference between them. People’s money is spent on education and health to increase job creation.
On the other hand, human development is seen as the ability to read, write and live a long and healthy life through education and health care facilities to make important decisions.
With this in mind, any investment in education and health services may be unprofitable if it does not increase the productivity of goods and services.
Therefore, basic education and basic health care are essential for people, no matter how much they contribute to productivity.
With such a view, everyone has the right to basic education and basic health care, that is, everyone has the right to read and write and to live a healthy lifestyle.
India Sector Education
The success of education in the country reflects the level of adult literacy, the level of completion of primary education and the level of literacy of the youth. Although, since 2015, government funding for school education has declined.
If private expenses incurred by individuals and community service institutions are included in the cost of education, the amount of costs should be much higher. Primary education takes up a large portion of the total cost of education and higher / secondary education takes very little.
However, this does not mean that financial resources should be transferred from higher education to higher education. As we expand school education, we need well-trained teachers for higher education.