The Role of Education in Human Capital Formation 2022

By | January 12, 2022

The Role of Education in Human Capital Formation 2022

The role of education in human resource development is important, as education promotes productivity and social prosperity. Education enables one to develop the individual’s abilities, namely, ability, knowledge, intellect.

The importance of human participation cannot be overemphasized and in particular the essence of all forms of development outcomes. Here, we have discussed the role of education in human resource development.

“Higher education, with its emphasis on academic study, can be a force for good in our lives.” – Rabindranath Tagore

What is Human Capital Formation?

How to define the structure of the workforce: The country can transform tangible resources such as land, mineral products, water power into tangible income such as factories, power stations, dams and dams, etc.

In order to run tangible resources, we need good people. As the capital, the country can transform human resources as students into human resources such as engineers, doctors, administrative officers, scientists, architects, teachers and so on.

Human leaders are needed in order to develop and operate tangible capital and human capital. People with personalities such as knowledge, skills, expertise, experience, represent the world before the world. These people enrich the community and the nation. In order to run the country well, we need good people and a well-developed staffing system.

Human Capital means skill, ability, expertise, knowledge to a person.
Human Capital Formation is a development of skill, skill, expertise, personal knowledge for years. A good education, a healthy lifestyle, good communication skills are all hallmarks of human well-being. Population development contributes to the economic and political development of the country.

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Human Capital Formation Resources

Human money needs to be well spent. Population use is a blessing to humanity. So, what factors contribute to the formation of the Human Capital Formation? There are five sources or features of Capital Formation of Human:

Educational Investment: An educated person is a national asset and is capable of generating more and more social development efforts. On the other hand, greater efficiency contributes to the growth of the national economy.

And the work becomes more effective or efficient through the inclusion of education. Spending money on individual education contributes to the improvement of the population in that person, which helps that person to increase productivity and efficiency of jobs.

That’s why spending on education works just as well as spending money on tangible money.

  • Education enables one to be better off in public life.
  • Education enables one to make the best decisions in life.
  • Education provides information.
  • Education helps one to be creative and creative.
  • Education makes a person curious and thus gives him the ability to ask questions.
  • 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.
  • 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.

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The Importance of the 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 work to make it easier. 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.

Relationships Between Human Resources and Economic Growth

What Is Economic Growth? Economic growth is measured by an increase in per capita income or an increase in the availability of individual goods and services in a country.

The Role of Human Capital Building for Economic Growth

The structure of the human economy and the growth of the national economy are directly linked. Education helps a person to build up a person’s strengths such as skills, efficiency, experience, which that person uses in the workplace. How human resource development contributes to the country’s economic growth is discussed below:

  • A healthy person can contribute to economic growth by providing uninterrupted employment than an illiterate person.
  • Human capital construction not only increases the productivity of human resources but also stimulates innovation and creates the ability to absorb new technologies.
  • Education provides information on understanding social change and scientific progress, thus facilitating innovation and innovation.
  • The availability of trained staff makes it easier to adapt to new technologies.

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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.

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.

The Role of Human Work in the Development of the Indian Economy

Education and Economic Growth in India depends on each other. Economic growth is the rise in real world income. The contribution to the country’s economic growth by an educated person is greater than that of an illiterate person.

In India, the minister of education, several education departments and various organizations such as the National Council of Educational Research and Training (NCERT), University Grants Commission (UGC) and the All India Council of Technical Education (AICTE) assist institutions under education infrastructure. . However, the vast majority of Indians cannot afford health care and higher education.

India has been funded by central and provincial governments since the 1950s to improve education infrastructure. India is one of the largest educational networks in the world, at the moment. This infrastructure helps many school-going people. This strong education infrastructure has provided resources in the developing economy through high-skilled workers.

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Indian Expenditure on Education

These government spending is expressed in two ways: as a percentage of ‘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.

People’s Economy and Human Development

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 what they do in production.

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 life.

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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.

Sustainable Action for Transforming Human Resources

  • NITI Aayog launched the Sustainable Action for Transforming Human Capital in Education (SATH-E) project in 2017 to identify and develop three ‘model’ countries in the school education sector. For this project, Jharkhand, Odisha and Madhya Pradesh: these three regions have been selected.
  • A curriculum-based learning / teaching improvement program for 2.2 million students has been launched.
  • Educational monitoring of schools and their students has been simplified, with approximately 1.5 lakhs being inspected every month.
  • Extensive prizes and recognition programs have been launched with external certificates. Test modifications, which include location testing and learning tracking formats, are introduced.
  • Many rounds of teacher training were held. In Madhya Pradesh, 30% of students have been transferred from lower levels of literacy, to numeracy groups to higher levels of reading grades 3-8 under the ‘Dakshta Unnayan’ literacy development program.
  • ‘National Initiative for School Heads and Teachers Holistic Advancement (NISHTHA)’, a national campaign launched by the Government of India to improve learning outcomes at primary level. NISHTHA is the largest teacher training program in the world.
  • A median improvement of 10–15% was seen in the learning outcomes as a result of the ‘Ujjjwal-Utthan’ learning development program in the state of Odisha.

Problems with the Making of People’s Money in India

  • Education for All: Literacy rates for both adults and children have increased, but have not yet reached the 100% goal. In 1950, when the Constitution of India was passed, it was noted that the Indian government promised to provide free and compulsory education to all children under 14 years.
  • Gender inequality: After 74 years of India’s independence, there are still differences in literacy rates between men and women that reflect gender equality. Girls are at risk of receiving schooling and higher education as a result of handling domestic obligations, up to the 21st century.
  • Higher Education: The All India Survey on Higher Education (AISE) released India’s Gross Enrollment Report (GER) with 27.4 percent in 2017-18, counting people aged 18-23 enrolled in higher education . This is a difficult issue regarding human resource development in India.
  • Digital Literacy: Only 4% of India’s rural households can have a computer, while 23.4% of households have a computer in an Indian city. In rural India, less than 15% of households have internet access, while 42% of Indian urban households have internet access. This situation is a barrier to population growth in today’s world.

World Bank’s Human Capital Index

The World Bank publishes the Human Capital Index (HCI) report. It is an indication of important segments of the population in all countries. It comprises 98% of the world’s population. India is ranked 116th in HCI 2020 in 174 countries.

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