Human capital formation

The process of acquiring and increasing the number of persons who have the skills, education, and experience which are critical for the economic and political development of a country. Human capital formation is thus associated with investment in man and his development as a creative and productive resource. It includes investment by society in education, investment by employers in training, as well as investment by individuals of time and money in their own development. Such investments have both qualitative and quantitative dimensions. In other words, human capital formation includes not only expenditures for education and training, but also the development of attitudes toward productive activity.