According to human capital theory, the main benefit of investing in education is:

A. Higher wages

B. Individual Growth

C. World Ranking of Country

D. Empowerment of People

E. Productivity

Choose the correct answer from the options given below:

Correct option is D

According to human capital theory, education is considered an investment that enhances a person's skills and knowledge, leading to higher wages and increased productivity.

• A (Higher wages) and E (Productivity) are the main benefits outlined by human capital theory, which argues that better-educated individuals tend to earn higher wages and contribute more productively to the economy.

Information Booster

• Human capital theory, proposed by Gary Becker, views education as an investment in individuals’ skills and knowledge, which enhances their economic productivity.
• Education is a critical factor that improves a person's human capital, leading to higher wages and improved economic output at the societal level.

Additional Knowledge

• Beyond individual economic benefits, investing in education can also improve social mobility, economic stability, and poverty reduction at the community and national levels.
• Return on investment (ROI) in education is significant both for individuals (in terms of earnings) and society (in terms of productivity and economic development).