Human Capital Theory
Human Capital Theory suggests that individuals can enhance their economic value by investing in their education, skills, and experiences. This theory posits that just like physical capital, such as machinery, human abilities can be developed and improved, leading to higher productivity and income over time.
According to this theory, investments in education and training are crucial for personal and societal growth. As people acquire more knowledge and skills, they become more valuable in the labor market, which can lead to better job opportunities and increased earnings, benefiting both individuals and the economy as a whole.