Capital Formation by Education

  title={Capital Formation by Education},
  author={Theodore William Schultz},
  journal={Journal of Political Economy},
  pages={571 - 583}
  • T. Schultz
  • Published 1 December 1960
  • Economics
  • Journal of Political Economy
IPROPOSE to treat education as an investment in man and to treat its consequences as a form of capital. Since education becomes a part of the person receiving it, I shall refer to it as human capital. Since it becomes an integral part of a person, it cannot be bought or sold or treated as property under our institutions. Nevertheless, it is a form of capital if it renders a productive service of value to the economy. The principal hypothesis underlying this treatment of education is that some… 

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