How does education contribute to economic growth

Question – How does education contribute to economic growth?

Answer –

Investment in education is considered the main source of human capital formation.

• Education is the process of teaching, learning and training especially in schools or colleges to improve knowledge and develop skills.
• Expenditure on Education is a way of enhancing and enlarging a productive workforce in a country.
• Labour skill of an educated person is more than an uneducated person, because education generates technical skills and creates a manpower which is suited for improving labour productivity.
• Spending on education by individuals is similar to spending on capital goods by companies with the objective of increasing future profit over a period of time.
• The difference between benefit and cost of education measures the market value of human capital formation.

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