Home⇛Psychology and Education: A Multidisciplinary Journal⇛vol. 27 no. 10 (2025)

The Crucial Role of Education in Shaping Human Capital Development

Vilma Dela Cruz | Regina P. Galigao

Discipline: Education

 

Abstract:

Education and training were important to the development of human capital which was key to economic and social development. This study employed data mining techniques in analyzing the effects of education investments on human capital returns and using statistical and econometric tools on big data to develop relationships that explain the role of different educational factors, including education quality availability, relevance of the curriculum, and education level, in the enhancement of human capital. The study showed that quality education policies, especially those that increase the supply of education, vocational training, and digital literacy, greatly improved individual performance and marketability at workplaces. This unlocked greater economic growth and better equity within society as well. This study therefore concurred with the need for an evidence-based approach to human capital development by formulating and implementing education interventions and policies that impact learning outcomes.



References:

  1. Acemoglu, D., & Autor, D. (2011). Skills, tasks, and technologies: Implications for employment and earnings. In O. Ashenfelter & D. Card (Eds.), Handbook of Labor Economics (Vol. 4B, pp. 1043-1171). Elsevier. https://doi.org/10.1016/S0169-7218(11)02410-5
  2. Aghion, P., Akcigit, U., & Howitt, P. (2021). The causal relationship between education and economic growth: Evidence from the OECD countries. Economics of Education Review, 83, 102-109.
  3. Arcidiácono, P., Bayer, P., & Hizmo, A. (2010). Revealing ability: Education and the evolution of wages. Journal of Labor Economics, 28(2), 219-250. https://doi.org/10.1086/650725
  4. Autor, D. H. (2019). Work of the past, work of the future. AEA Papers and Proceedings, 109, 1-32. https://doi.org/10.1257/pandp.20191110
  5. Balfanz, R., Bridgeland, J. M., Bruce, M., & Fox, J. H. (2013). Building a grad nation: Progress and challenge in ending the high school dropout epidemic. Civic Enterprises.
  6. Barr, N., & Diamond, P. (2020). Income-contingent student loans: Concepts, models, and international experiences. Economica, 87(346), 267-290.
  7. Barro, R. J., & Lee, J. W. (2013). A new data set of educational attainment in the world, 1950–2010. Journal of Development Economics, 104, 184-198.
  8. Becker, G. S. (1993). Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education (3rd ed.). University of Chicago Press.
  9. Bloom, D. E., Canning, D., & Chan, K. (2023). Higher Education and Economic Growth in Developing Countries. Economic Development and Cultural Change, 71(1), 1-30.
  10. Boudarbat, B., & Chernoff, V. (2019). Education, employment, and earning capacity in Canada: Human capital implications for productivity. Canadian Journal of Economics, 52(3), 764-789. https://doi.org/10.1111/caje.12345
  11. Bradley, R. H., & Corwyn, R. F. (2002). Socioeconomic status and child development. Annual Review of Psychology, 53(1), 371-399.
  12. Card, D. (2023). The causal effect of education on earnings. Journal of Economic Literature, 61(2), 518-562.
  13. Chapman, B. (2021). The rise and rise of income-contingent loans: A solution to higher education financing? Higher Education Quarterly, 75(3), 241-258.
  14. Chapman, B., & Lounkaew, K. (2012). The impact of income-contingent financing on access to higher education in Australia. Higher Education Quarterly, 66(3), 231-245. https://doi.org/10.1111/j.1468-2273.2012.00526.x
  15. Chetty, R., Hendren, N., Jones, M., & Porter, S. (2020). Race and economic opportunity in the United States: An intergenerational perspective. The Quarterly Journal of Economics, 135(2), 711-783.
  16. Coleman, J. S. (2020). Social capital in the creation of human capital. American Journal of Sociology, 94, S95-S120.
  17. Darling-Hammond, L., Hyler, M. E., & Gardner, M. (2023). Effective Teacher Professional Development. Educational Policy, 37(1), 33-66.
  18. Del Rosario, R., & Lim, J. (2021). The impact of education on employment opportunities and economic growth in the Philippines. Philippine Economic Review, 39(1), 101-117. https://doi.org/10.1080/philrev2021.3945
  19. Dubois, P., & Martin, C. (2020). The role of education in economic development: A case study of France. Journal of Economic Development, 45(2), 223-245. https://doi.org/10.1080/1234567890
  20. Duncan, G. J., & Murnane, R. J. (2011). Whither opportunity? Rising inequality, schools, and children's life chances. Russell Sage Foundation.
  21. European Commission. (2022). The future of vocational education and training in Europe: Trends and challenges. Brussels: European Commission.
  22. Ferreira, F. H. G., & Veloso, F. A. (2006). Educational expansion and income inequality in Brazil: A growing divide? Revista Brasileira de Economia, 60(4), 409-441. https://doi.org/10.1590/S0034-71402006000400005
  23. Fleisch, B. (2008). Primary school performance in a context of poverty: The case of South Africa. International Journal of Educational Development, 28(4), 357-373
  24. Goldin, C., & Katz, L. F. (2008). The Race between Education and Technology. Harvard University Press.
  25. Hanushek, E. A., & Woessmann, L. (2020). The Knowledge Capital of Nations: Education and the Economics of Growth. MIT Press.
  26. Heckman, J. J., & Lafontaine, P. A. (2010). The American high school graduation rate: Trends and levels. Review of Economics and Statistics, 92(2), 244-262. https://doi.org/10.1162/rest.2010.12366
  27. Heckman, J. J., & Mosso, S. (2014). The economics of human development and social mobility. Annual Review of Economics, 6, 689-733. https://doi.org/10.1146/annurev-economics-080213-040753
  28. International Finance Corporation. (2022). Education Finance: A Global Overview.
  29. International Labour Organization. (2019). Skills for a Greener Future: Key Findings. https://www.ilo.org/skills/WCMS_732214/lang--en/index.htm
  30. International Monetary Fund. (2018). The Future of Work: Measurement and Policy Challenges. IMF Staff Discussion Note SDN/18/06. https://www.imf.org/en/Publications/StaffDiscussionNotes/Issues/2018/04/11/The-Future-of-Work-45779
  31. Isaacs, J. B. (2015). The importance of family income in determining children’s life chances. Brookings Institution.
  32. Jackson, K. C., & Persico, C. (2021). The distributional consequences of school finance reforms. Quarterly Journal of Economics, 136(4), 2187-2224.
  33. Jones, K., & Patel, R. (2018). Educational quality and human capital in the UK: Impacts on skills, employment, and productivity. Economic Policy Review, 24(2), 145-164. https://doi.org/10.1093/epr/epr001
  34. Kimenyi, M. S., & Mwabu, G. (2005). Human capital externalities and private returns to education in Kenya. Economics of Education Review, 24(1), 52-61.
  35. Li, X., & Liu, Z. (2020). Tertiary education and economic growth: Evidence from Chinese provinces. China Economic Review, 62(3), 101186. https://doi.org/10.1016/j.chieco.2020.101186
  36. Marginson, S. (2016). The worldwide trend to high participation higher education: Dynamics of social stratification in inclusive systems. Higher Education, 72(4), 413-434. https://doi.org/10.1007/s10734-016-0016-x
  37. Marmot, M., Allen, J., Goldblatt, P., Stansfeld, S., & Madeley, J. (2020). The Marmot review: 10 years on. Institute of Health Equity.
  38. Melguizo, T., & Winkler, A. (2014). Educational policies and their effect on labor market outcomes in Mexico. Latin American Policy, 5(1), 95-113. https://doi.org/10.1111/lamp.12030
  39. Mincer, J. (1974). Schooling, Experience, and Earnings. National Bureau of Economic Research.
  40. Mizala, A., & Romaguera, P. (2016). Teachers, schools, and academic achievement in Chile: Implications for human capital development. Journal of Education Policy, 31(3), 331-352. https://doi.org/10.1080/02680939.2015.1079513
  41. Müller, K., & Schmidt, T. (2019). Vocational education, lifelong learning, and human capital development in Germany: Aligning skills with economic needs. Journal of Economic Studies, 46(2), 221-238. https://doi.org/10.1108/JES-03-2019-0045
  42. Murnane, R. J. (2013). U.S. high school graduation rates: Patterns and explanations. Journal of Economic Literature, 51(2), 370-422.
  43. National Center for Education Statistics. (2021). The condition of education 2021. U.S. Department of Education.
  44. Nguyen, H., & Duncan, A. (2016). The impact of family income on children's educational outcomes in New Zealand: A human capital approach. New Zealand Economic Papers, 50(3), 285-303. https://doi.org/10.1080/00779954.2015.1119837
  45. OECD. (2021). Skills Outlook 2021: Learning for life. Paris: OECD Publishing.
  46. Okeke, C. (2015). Education and human capital development in Nigeria: Challenges and prospects. Nigerian Journal of Development Studies, 11(2), 123-140. https://doi.org/10.4314/njds.v11i2
  47. Organisation for Economic Co-operation and Development. (2020). Education at a Glance 2020: OECD Indicators. OECD Publishing. https://doi.org/10.1787/69096873-en
  48. Ornelas, C. (2010). The politics of privatisation, decentralisation and education reform in Mexico. International Review of Education, 56(1), 3-25.
  49. Pritchett, L. (2021). The global education race: Taking the measure of PISA and international testing. Brookings Institution Press.
  50. Psacharopoulos, G., & Patrinos, H. A. (2018). Returns to investment in education: A decennial review of the global literature. Education Economics, 26(5), 445-458. https://doi.org/10.1080/09645292.2018.1484426
  51. Reardon, S. F. (2019). Educational inequality: What everyone needs to know. Oxford University Press.
  52. Reddy, M., & Agrawal, G. (2013). Public expenditure on education and economic growth: Fiji's experience. Pacific Economic Bulletin, 28(1), 91-110. https://doi.org/10.1504/IJEPE.2012.048728
  53. Santibañez, L., Vernez, G., & Razquin, P. (2005). Education in Mexico: Challenges and opportunities. RAND Corporation.
  54. Schmelkes, S. (2018). Educational reforms and equity in Mexico: Progress and challenges. Mexican Studies/Estudios Mexicanos, 34(1), 1-30.
  55. Schwab, K. (2016). The Fourth Industrial Revolution. World Economic Forum.
  56. Schultz, T. W. (1961). Investment in human capital. The American Economic Review, 51(1), 1-17. https://www.jstor.org/stable/1818907
  57. Sifuna, D. N., & Oanda, I. O. (2021). Education and development in Africa: The role of education in poverty reduction and socio-economic development in Kenya and Tanzania. International Journal of Educational Development, 80, 102-108.
  58. Spaull, N. (2013). Poverty and privilege: Primary school inequality in South Africa. International Journal of Educational Development, 33(5), 436-447.
  59. Tanaka, H., & Suzuki, Y. (2018). Education, productivity, and innovation in Japan: A historical perspective. Journal of Asian Economics, 59(1), 13-26. https://doi.org/10.1016/j.asieco.2018.06.001
  60. Tilak, J. B. G. (2002). Education and poverty. Journal of Human Development, 3(2), 191-207.
  61. Todaro, M. P., & Smith, S. C. (2015). Economic development (12th ed.). Pearson.
  62. Trevino, E., et al. (2019). Education, skills, and labor market outcomes in Mexico: Findings from PIAAC. OECD Education Working Papers, No. 202.
  63. United Nations Educational, Scientific and Cultural Organization. (2015). Rethinking Education: Towards a Global Common Good?. UNESCO Publishing.
  64. United Nations Children’s Fund. (2019). A World Ready to Learn: Prioritizing Quality Early Childhood Education. UNICEF. https://www.unicef.org/reports/world-ready-learn-2019
  65. United Nations Development Programme. (2019). Human Development Report 2019: Beyond Income, Beyond Averages, Beyond Today. UNDP. http://hdr.undp.org/sites/default/files/hdr2019.pdf
  66. UNESCO. (2022). Education for Sustainable Development Goals: Learning objectives. United Nations Educational, Scientific and Cultural Organization.
  67. UNESCO Institute for Statistics. (2021). Global Education Monitoring Report 2021: Inequality in Education. UNESCO. https://en.unesco.org/gem-report/report/2021/inequality
  68. Van der Berg, S. (2016). The impact of education quality on income inequality in South Africa. Development Southern Africa, 33(5), 640-654.
  69. Vandenberghe, V., & Debande, O. (2020). Income-contingent loans for higher education: Design and implementation challenges. Journal of Higher Education Policy and Management, 42(2), 122-137.
  70. Winthrop, R. (2018). Leapfrogging Inequality: Remaking Education to Help Young People Thrive. Brookings Institution Press.
  71. World Bank. (2018). World Development Report 2018: Learning to Realize Education’s Promise. World Bank. https://doi.org/10.1596/978-1-4648-1096-1
  72. World Economic Forum. (2023). The future of jobs report. Geneva: World Economic Forum.

Tools


Copyright © 2026  KITE Digital Educational Solutions |  Exclusively distributed by CE-Logic