Education and the Importance for the Economy

Human Capital is the stock of enterprise accumulated by a worker to enhance future productivity. In order to create this, investment is needed in education and training. A broad interpretation of human capital can be taken by including improvements in nutrition, health and housing as contributing factors in increasing human capital. In economic jargon it is said, spending to increase the stock of human capital should be viewed as investment and not as consumption demand.
In terms of analysing the benefits in investing in human capital, the costs of this have to be taken in to consideration through direct costs of paying for tuition fees but also indirect costs of delaying paid employment for extra years in education. …