Abstract

The human capital approach, introduced in 1960, has been used by economists to establish connections between education, skills, and personal income. It resulted in a redistribution of public expenditure by viewing education not only as a cost but also as an economic input, a way to increase revenue in the medium and long term. Human capital theory highlights the crucial role of education in the economy. With the rise of the knowledge society, scientists have debated the potential end of poverty, inequality, and social exclusion. They envisioned a new knowledge economy and a more egalitarian society. The significant increase in socioeconomic inequality and social exclusion in the post-pandemic United States has shaken the perfect world of work envisioned for the future. Human capital is closely related to gross domestic product and population per capita. The uncertainty caused by the COVID-19 outbreak in 2020 had a significant negative impact on both high-income and middle- and low-income countries. During and after the pandemic, remote work has become increasingly common. Universities need to prepare individuals to be adaptable and capable of working alongside artificial intelligence to support the growth of remote work. The World Bank is the richest development finance institution influencing countries’ education reforms and policies. This study will assess the significance of education in supporting the future workforce. It involves a time series analysis of World Development Reports from 1978 to 2024 and a comparative analysis of human capital perspectives between the World Bank and the OECD.

DOI

https://www.doi.org/10.5038/9781955833127

Recommended Citation

Küçük, Ö., & Çobanoğlu, C. (2024). The World Bank's new approach to human capital model and education. In W. B. James, C. Cobanoglu, & M. Cavusoglu (Eds.), Advances in global education and research (Vol. 5, pp. 1–13). USF M3 Publishing. https://www.doi.org/10.5038/9781955833127