THE IMPACT OF EDUCATION ON THE LEVEL OF HUMAN CAPITAL: A THEORETICAL APPROACH
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The study substantiates that without significant investment in human capital, no country has achieved consistent economic development. Various forms of human capital accumulation have been found to yield high returns, including basic education, higher education, apprenticeships, research and capacity building. It is clarified that education was not considered the main factor of production in earlier neoclassical models and, therefore, was not taken into account in growth models. The new growth models include the impact of human capital on national growth through two main channels: in the first channel by explicitly modeling individual choices of investment in education, the second channel relates technological change and growth to the stock of human capital. It has been proven that there is a positive feedback from improved education to greater income equality, which contributes to higher growth rates. It has been proven that in order to understand human capital, it is necessary to return to the family, because it is families who care about their children and strive to promote the education and values of their children by any means possible. As difficult as it is to quantify the social benefits, the implicit value of the non-monetary benefits of education is even more difficult to measure. However, the non-monetary contribution that the most educated make to society, combined with the reduction in social costs they incur over their lifetimes, implies a significant return on their social investment.
The work explored several models of the relationship between the quality of education, measured by education expenditures as a percentage of GDP, and economic growth. A model of linear dependence between education and economic growth, innovative technological changes, a vector correction model for the study of the causal relationship between education, especially higher education, and economic growth. Original research and findings on the impact of education on economic growth in sub-Saharan Africa. Due to the lower quality of schools, the impact of education on economic growth in these countries is also lower. As a result, the impact of public spending on economic growth is largely mediated through its impact on improving the quality of education.
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