The document discusses human capital in terms of education, abilities, creativity, training, skills and knowledge. It notes that governments, employers and individuals all spend resources on education and training because they expect returns in the form of faster economic development, increased productivity and higher earnings. However, insufficient economic growth or poor education quality can limit demand for human capital. While developing countries spend a smaller percentage of GDP on education than developed countries, private spending varies significantly between countries and does not correlate directly with income level. The different levels of education discussed are primary, secondary, tertiary and vocational.

2. HUMAN
CAPITAL
EDUCATION
ABILITIES
CREATIVITY
TRAINING
SKILLS
KNOWLEDGE

3. SPEND PUBLIC FUNDS ON EDUCATIONGOVERNMENTS
• A BETTER EDUCATED POPULATION WILL CONTRIBUTE TO FASTER AND MORE SUSTAINABLE
DEVELOPMENT.
PAY FOR EMPLOYEE TRAININGEMPLOYERS
• EXPECT TO COVER THEIR COSTS AND GAIN ADDITITONAL PROFITS FROM INCREASED PRODUCTIVITY.
SPEND TIME AND MONEY TO GET EDUCATION AND TRAININGINDIVIDUALS
• BETTER EDUCATION AND SKILLS EARN MORE
• ABLE TO DELIVER MORE OUTPUT IS MORE VALUABLE IN THE MARKETPLACE.

4. WORKERS WITH LOWER AND
HIGHER EDUCATION AND
SKILLS ARE DELIBERATELY
PAID SIMILAR WAGES TO
PRESEVE A RELATIVE
EQUALITY OF EARNINGS
INSUFFICIENT DEMAND
FOR HUMAN CAPITAL
BECAUSE OF SLOW
ECONOMIC GROWTH
QUALITY OF
EDUCATION IS LOW OR
KNOWLEDGE AND
SKILLS ACQUIRED AT
SCHOOL DO NOT
MATCH MARKET
DEMAND

6. GOVERNMENTS PRIVATE
GOVERNMENT OF DEVELOPING
COUNTRIES DEVOTE A LARGER
SHARE OF THEIR GDP EDUCATION
BUT IS STILL SMALLER THAN THAT
IN DEVELOPED COUNTRIES:
3.3% OF GDP IN LOW INCOME
COUNTRIES
4.8% OF GDP IN MIDDLE INCOME
COUNTRIES
5.4% OF GDP IN HIGH INCOME
COUNRIES
MANY COUNTRIES PRIVATE
SPENDING ON EDUCATION IS
CONSIDERABLE. THE DIFFERENCE
BETWEEN PUBLIC AND PRIVATE
SPENDING ON EDUCATION VARIES
ENORMOUSLY AND DOES NOT
SEEM TO BE CORRELATED WITH A
COUNTRY’S AVERAGE INCOME

7. PRIMARY EDUCATION
SECONDARY EDUCATION
TERTIARY EDUCATION – UNIVERSITY OR COLLEGE
VOCATIONAL EDUCATION – PROVIDING ON-THE-JOB TRAINING FOR
EMPLOYEES AND IN FINANCING TRAINING

8. For more details
https://www.youtube.com/watch?v=_1dvEfd0LYc