Volume : 8, Issue : 9, SEP 2022

HUMAN CAPITAL THEORY: THE BASIC ECONOMIC PERSPECTIVE ON EDUCATION

CHARYL T. OMPAD, MA.ED, JUNABELLE A. OMPAD, MA.ED, MARIEL F. MONZALES, MA.ED, JENELYN C. ABONG, MA.ED, DAISY MAE D. LANGGAMON, MA.ED, EMILY C. ROSAL, DPA, PHD TM

Abstract

This paper examines the positive correlation between increasing the higher educational attainment and economic growth in our country. Workers with more education are thought to be more skilled and productive than those with less education, which merits their higher salaries. The hypothesis suggests that higher levels of education schooling results in higher productivity and pay by linking the worker's preparedness to their levels of academic education. According to this hypothesis, employees pursue education to increase their cumulative wages' current value, and the demand for various educational degrees is explained by using private returns. According to the Human Capital Theory, investments in education or training are made only with the intent to obtain, just like investments in physical capital. The efficiency, equity, and financial consequences that follow make education return estimation popular. Comparing education investment to other assets can help governments and people justify education expenditure. In addition, the ranking of educational returns relative to other investment returns should help policymakers in the education sector make well-informed, fact-based investment choices.

Keywords

ECONOMIC GROWTH, EDUCATION, HUMAN DEVELOPMENT, AND MONEY.

Article : Download PDF

Cite This Article

Article No : 5

Number of Downloads : 620

References

  1. Albina, A.C. & Sumagaysay, L.P. (2020). Employability tracer study of Information Technology Education graduates from a state university in the Philippines. Social Science and Humanities Open, https://doi.org/10.1016/j.ssaho.2020.100055n.
  2. Chulanova, Z. K. S. (n.d.). Methodology for assessing the state of human capital in the context of innovative development of the economy: A three-level approach. The Journal of Asian Finance, Economics and Business. Retrieved September 24, 2022, from http://koreascience.or.kr/article/JAKO201915658236096.page.
  3. Cuadra, L., Aure, M.R.K., & Gonzaga, G. (2019). The use of tracer study in improving undergraduate programs in the university. Asia Pacific Higher Education Research Journal. 6(1), 13-25.
  4. Welcome to IJCR. WELCOME TO IJCR | International Journal of Current Research. (n.d.). Retrieved September 24, 2022, from https://www.journalcra.com/welcome-ijcr.
  5. Wilton, N. (2012). The impact of work placements on skills development and career outcomes for business and management graduates. Studies in Higher Education, 37(5), 603–620. doi: http://doi./org10.1080/03075079.2010.532548n.