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1. The theory enables us to understand the importance of investing in human beings.
2. We can look at the pecuniary and non-pecuniary benefits of investing in education.
3. It explains better private and social returns of education.
4. Education economists use the theory as a guide to analyze the link between education and
economic development.
5. The theory makes us to realize the importance of management as a factor of production.
6. Enables us to understand the aspect of direct and indirect costs which are incurred by
individuals in order to invest in themselves.
7. This theory enables us to understand the importance of knowledge and why we should
seek for more knowledge which empowers.
8. The theory enables us to appreciate the important link between education and other
economic sectors. E.g. social capital in an organization and the need to strengthen it.
NatalieR answered the question on June 17, 2022 at 12:26