EDUCATION AND

HUMAN CAPITAL
 GROUP VI
EDUCATION AND HUMAN CAPITAL
by Chrishiel Provido, Earl Dionne Catalina, Brian Joy Imarga, John Emmanuel Medina, and Jaynor Narvasa

2
 1
DEFINITION OF TERMS
by Chrishiel Provido

3
 EDUCATION
According to Business Dictionary, Education
is the wealth of knowledge acquired by an
individual after studying particular subject
matters and courses that provide an
understanding of a particular profession.
4
THREE TYPES OF EDUCATION

01 FORMAL EDUCATION

INFORMAL EDUCATION 02
03 NON-FORMAL EDUCATION
 ROLE OF EDUCATION IN THE ECONOMIC DEVELOPMENT

01 02 03

STANDARD OF LIVING HUMAN CAPITAL GROWTH AND

Improve the quality of people’s FORMATION DEVELOPMENT
lives and leads to broad social Raises people productivity & Plays a very crucial role in
benefits to individuals and creativity, and promotes securing economic progress and
society entrepreneurship and technological improving income distribution.
6 advances.
“ “The principle goal of education in the
schools should be creating men and women
who are capable of doing new things, not
simply repeating what other generations
have done.”
-- Jean Piaget, 1896-1980, Swiss
developmental psychologist, philosopher

7
HUMAN CAPITAL
According to Investopedia, Human Capital is
a quantification of the economic value of a
worker's skill set. This measure or
quantification builds on the basic production
input of labor measure where all labor is
thought to be equal. However, the concept of
human capital recognizes that not all labor is
equal. 8
THEODORE SCULTZ
Theodore Schultz, an PICTURE NI THEODORE

economist, invented the term

"human capital" in the 1960s
to reflect the value of human
capacities.

9
BIG CONCEPT
An organization is often said to only be as
good as its people. The same goes for an
economy. The citizens are one of the
foundations of an economy. Skilled human
capital is critical to development.
10
 DEVELOPMENT
According to Hezel, development was
generally identified with economic
development. However in the present-day
thinking, the meaning of development has been
broadened to embrace more than merely
economic growth.
11
 2
RELATIONSHIP BETWEEN
EDUCATION AND HUMAN CAPITAL
by Earl Dionne S. Catalina

12
 First of all, the human
capital is an input in the
production function, thus
explaining the options for
the investment in

>>>>>>>>>
education. Secondly, the factors that
involve in endogenous
growth – especially the
technological progress –
are correlated to the human
>>>>>>>>> capital stock.
 ARGUMENT

Harmon, Oosterbeek and Walker Sianesi and Van Reenen (2000)

(2000) However, human capital
More educated countries are accumulation is not always a
developing faster due to the fact that determinant factor of the economic
the school enables the labor force to performance.
innovate new technologies and to
adapt the existing ones to the local
production.

14
 POSITIVE RELATIONSHIP
BETWEEN EDUCATION AND
HUMAN CAPITAL
 POSITIVE RELATIONSHIP

 EDUCATION
Develops our
Human Capital
and Economic
Capabilities  TRAINING
1
 POSITIVE RELATIONSHIP

FACT
Human capital investment is the process companies use to
Develops our develop employees.
Human Capital
and Economic FUNCTION
Capabilities
Using education and training to improve human labor
1 helps companies create a competitive advantage.
 POSITIVE RELATIONSHIP

Develops our THEORY OR SPECULATIONS

Human Capital
and Economic Human capital investment relates to the theory of skilled
Capabilities versus unskilled labor, or the Theory X and Y.

1
 POSITIVE RELATIONSHIP

Economic On an individual level, the high

Growth, returns to education reflect its
Innovation, & impact on labor productivity.
Development

2
 POSITIVE RELATIONSHIP

FACT
By investing on education, human capital is developed
which affects economic growth and can help to develop an
Economic economy through the knowledge and skills of people.
Growth,
Innovation, & FUNCTION
Development
Therefore, a country should invest in education to develop
2 its ‘human capital’ — the ability of a population to perform
labor to produce economic value.
 POSITIVE RELATIONSHIP

THEORY OR SPECULATIONS
Economic
Relates to the theory Human Capital Theory which rests
Growth,
on the assumption that formal education is highly
Innovation, &
Development
instrumental and necessary to improve the productive
capacity of a population.
2
NEGATIVE RELATIONSHIP BETWEEN
EDUCATION AND HUMAN CAPITAL
 NEGATIVE RELATIONSHIP
DISREGARDING EDUCATION

1 IN THIRD WORLD
COUNTRIES

Accumulation of savings from within the country or

adequate inflow of foreign aid from abroad was the
prerequisites for economic development in the
developing countries.
 NEGATIVE RELATIONSHIP
DISREGARDING EDUCATION

1 IN THIRD WORLD
COUNTRIES

Education was seen as something of a luxury for

those countries struggling to produce enough to feed
their populations.
 NEGATIVE RELATIONSHIP

2
REJECTION OF THE
PRECEDING IDEA

Educational expansion could lead to political

instability, social unrest, brain drain, and
retardation of economic growth in certain
circumstances.
 NEGATIVE RELATIONSHIP

2
REJECTION OF THE
PRECEDING IDEA

If education was a prerequisite for economic growth,

it was by no means the only one and perhaps not
even the most important.
 NEGATIVE RELATIONSHIP

2
REJECTION OF THE
PRECEDING IDEA

A balance was required between the educational

thrust and the development of other institutions in
the Third World. Or else, education might well be
counterproductive in terms of over-all
development.
 NEGATIVE RELATIONSHIP

3 EDUCATION AS BARRIER TO
DEVELOPMENT

It was a real obstacle to development for the Third

World countries for it requires a huge bulk of
investment.
 NEGATIVE RELATIONSHIP

3 EDUCATION AS BARRIER TO
DEVELOPMENT

It actually leads to class stratification and actually

promotes social inequality.
 NEGATIVE RELATIONSHIP

3 EDUCATION AS BARRIER TO
DEVELOPMENT

Consumption of the educated eventually outstrips

their productivity resulting into a society outdoing
itself to keep up with educational demands
ALL IN ALL
The relationship between education and
development is continuously shifting
because it varies among different countries
and institutions.
31
“ It might have positive effects to
countries with good institutions
and customs, but it might be
otherwise to those who do not
have good institutions.

32
 3
DEVELOPMENT OF HUMAN CAPITAL
IN THE THIRD WORLD COUNTRIES
by Brian Joy Imarga

33
 IMPORTANCE
Human capital theory states that the higher
the level of human capital is, the higher the
level of performance (Barney, 1991), and
entrepreneurial performance (Wu, 2013).

34
DETERMINANTS

CULTURAL URBAN
SIZE EXPENDITU DIVERSITY AMETIES
RE
1 2 3 4

INDUSTRY
STRUCTURE HEALTHCAR
E
5 6
HOW CAN A COUNTRY INCREASE HUMAN
CAPITAL?

01 THROUGH FORMAL EDUCATION

ON-THE-JOB TRAINING
02
03 IMPROVE HEALTH AND PHYSIOLOGICAL
BEING
PROBLEMS OF HUMAN CAPITAL FORMATION IN
DEVELOPING COUNTRIES

1
Faster increase in population

37
 PROBLEMS OF HUMAN CAPITAL FORMATION IN
DEVELOPING COUNTRIES

2
Defective patterns of investment in education

38
 PROBLEMS OF HUMAN CAPITAL FORMATION IN
DEVELOPING COUNTRIES

3
More stress on the provision of buildings and
equipment

39
 PROBLEMS OF HUMAN CAPITAL FORMATION IN
DEVELOPING COUNTRIES

4
Shortage of health and nutrition facilities

40
PROBLEMS OF HUMAN CAPITAL FORMATION IN
DEVELOPING COUNTRIES

5
No facilities for on the job training

41
PROBLEMS OF HUMAN CAPITAL FORMATION IN
DEVELOPING COUNTRIES

6
Study programs for adults

42
 PROBLEMS OF HUMAN CAPITAL FORMATION IN
DEVELOPING COUNTRIES

7
Halfhearted measures for promotion of
employment

43
 PROBLEMS OF HUMAN CAPITAL FORMATION IN
DEVELOPING COUNTRIES

8
Failure to plan for the best use of manpower

44
PROBLEMS OF HUMAN CAPITAL FORMATION IN
DEVELOPING COUNTRIES

9
Neglect of agriculture education

45
BIG CONCEPT
Development of human capital is an
obstacle to developing countries because it
requires huge investments in formal
education, healthcare and other necessary
infrastructures.
46
“ It may also impossible for the developing
countries to develop its human capital
because of the lack of support of their
government. It is important to note that a
lack of governmental support can impede
human capital investment.

47
 4
ISSUES AND CHALLENGES OF
PHILIPPINE EDUCATION
by John Emmanuel Medina

48
QUALITY OF EDUCATION
BREAKDOWN OF DISCIPLINE

Students lack discipline because of putting too

much emphasis to their rights. As such, their
responsibilities are overlooked because of hiding in the
shadow of the Anti-Bullying Law.

49
QUALITY OF EDUCATION
MORE FOCUSED TO ACCESS RATHER THAN
QUALITY

The present administration’s reform on education is a

good start when viewed from the outside. It provides
funds to students in order to access education through the
Free Tuition Law. However, the quality of the students
is compromised since the access to education is more
emphasized which results to shortage of school
buildings and low teacher to student ratio.

50
COST OF EDUCATION

There is a big disparity in educational achievements

across social groups. Students from wealthy families
have excellent educational background gained from
exclusive private schools at the start of their education
until they finish college, unlike the students from the
less fortunate families, wherein most of them could
not even finish neither elementary nor secondary level
because of poverty.
51
OVERWORKED AND UNDERPAID TEACHING STAFF

Teaching has often been referred to as the “most

notable of all professions.” To many teachers, however,
the noble image of their profession has been transformed
into an illusion. Over the last three decades, we have
come to think of the Filipino teachers as overworked
and underpaid professionals.

52
EDUCATION MISMATCH

The major problem of the tertiary level is the large

proportion of the so called “mismatch” between training
and actual jobs, as well as the existence of a large group
of educated unemployed or underemployed.

53
GLOBALIZATION

It is in the educational sector where the concept of

globalization is further refined and disseminated. It
comes in varied forms as “global competitiveness,” “the
information highway,” “the Third Wave Theory,”
“postmodern society,” “the end of history,” and
“borderless economy.”

54
 5
RECOMMENDATIONS
by Jaynor Narvasa

55
 BUDGET ALLOCATION

Allocation of government to education is the highest among all

other departments in the country. The highest budget allocation of
P691.1 billion will go to the education sector, with P613.05 billion
for the Department of Education, P13.5 billion for the Commission
on Higher Education, and P64.6 billion for State Universities and
Colleges.

56
 CONTINUOUS IMPROVEMENT

The Continuous Improvement Programme is a project of the DepEd

and the Philippines Australia Human Resource and Organisational
Development Facility (PAHRODF) to improve school processes
and systems that affect the learning outcomes of students.

57
 EVERY CHILD A READER

Every Child A Reader Program is a project of DepEd. It aims to

ensure that Grades 1-IV pupils are able to read at their own levels.
No pupils will be promoted to Grade IV unless he or she meets
the reading standards under the program.

58
 COALITIONS FOR CHANGE

In 2014, The Australian Embassy in Manila and The Asia

Foundation, through its Coalitions for Change (CfC) program, began
an initiative to find a more long-term solution to school
congestion in the Philippines. Coalitions for Change is predicated
in advancing reforms that are technically sound as well as
politically feasible.

59
 EXISTENCE OF MICROCREDIT

These lending companies have education loan wherein they extend

or lend money to their members for the expenditures of the
education of their children. In this way, people living near the
poverty line will be able to support their children. They will work
hard to pay their loans.

60
 REPUBLIC ACT NO. 10931

An act promoting universal access to quality tertiary education

by providing for free tuition and other school fees in state
universities and colleges, local universities and colleges and state-
run technical-vocational institutions, establishing the tertiary
education subsidy and student loan program, strengthening the
unified student financial assistance system for tertiary education, and
appropriating fund.

61
 NO COLLECTION POLICY

DepEd is strictly enforcing the “no collection” policy to bar

teachers from collecting money from students for purposes of
projects, extra-curricular activities and the like. This policy
likewise extends to teachers to bar organizations and others from
exacting money from them for various kinds of contributions in the
community.

62
 MADRASAH EDUCATION

These programs are intended to the Muslim Community, Children

with Disabilities, and Indigenous People respectively.

63
 ALS AND ADM

Alternative Learning System caters to the educational needs of

Out-of-school Youths and Adults aged 16 and above and does not
follow the formal educational system. DepEd is now aggressively
promoting the Alternative Delivery Modes in the public school
system to address the educational opportunities of those who
dropout from the system. 

64
 PHIL-EDUCATION FOR ALL

Major legal framework for inclusive education. Their primary

objective is to send all school-aged children to school or is given
education in any form of modalities based on the formal
curriculum. It embraces all Filipinos regardless of any
circumstances like extreme poverty and absence of information.

65
 HOUSE BILL 7211

ACT representatives are asking for a pay hike. The president

promised to increase the wages of teachers but they can’t assure
them that the government can double their wages. However, ACT is
demanding the president to hear them out.

66
 INVOLVEMENT OF INDUSTRY

It is suggested that leaders in business and industry should be

actively involved in higher education. Furthermore, a selective
admission policy should be carried out; that is, mechanisms should
be installed to reduce enrolment in oversubscribed programs
and promote enrolment in undersubscribed ones.

67
END OF REPORT
68
CREDITS

Proper credits is given to all the authors who wrote and

released the resources presented.

69
CREDITS

Also, special thanks to all the people who made and

released these awesome resources used in the
presentation for free.

This presentation uses the following typographies:

▰ Titles: Roboto Condensed
▰ Body copy: Roboto Condensed

70