Education

section 1: Human capital

Presented by :
Chaymaa chichane (AF)
Plan :
1. Introduction

2. Education and human capital: Becker’s theory

3. The economic value of education : Schultz’s theory

4. Returns to education : Psacharopoulos’s theory

5. Conclusion
1.Introduction

 human capital and education are drivers of growth and prosperity,

The idea of human capital originates from the notion that schooling develops
certain qualities in people that enhance their productivity and growth , just
as physical capital or investment does.
2.Education and human capital: Becker’s
theory

 Gary Becker argued that education is an investment in human capital and can
be analyzed in a similar fashion to investment in physical capital

 Many studies have found significant Relationship between education and

human capital.In the US, Edward Denison finds that the increase in schooling
of the average worker between 1929 and 1982 explains about one fourth of
the rise in incomes.
3.The economic value of education :
Schultz’s theory

 Schultz's hypothesis was that calculating rates of return from investment in

human capital would confirm the importance of investment in schooling and
research for the productivity of the labour force and the economy's capacity
to grow.
 Gary Becker , defined human capital essentially as years of schooling. but
Schultz’s own research concentrated on schooling, in his editorial work and
intellectual leadership of organizing conferences, he applied a much broader
view of human capital than Becker.
4.Returns to education : Psacharopoulos’s
theory

 Psacharopoulos views human capital development through education as a

means to a more productive society. he contends that economics is an
integral utility in the process of educational planning ,especially because it
might serve as a guide for resource allocation when deciding the best way to
create effective and efficient school systems.
Conclusion:
 To sum up ,Education improves productivity and prosperity, it increases
national income and other cultural richness. so It does not only contribute
towards the growth of the people but also the development of society as a
whole.