Abstract:

Development and growth of a country depends on her human capital. All developed countries have higher human capital. Due to its importance it is widely discussed topic. Education is the main and primary component of human capital, most of the studies used education to assess outcomes of human capital. No doubt, education is the primary component of it but education directly cannot produce ultimate product (productivity), rather, it develops skills such as cognitive and non-cognitive skills (psychological capital, emotional intelligence and personality traits) which lead to ultimate product or result of human capital investment. Previous literature focused and discussed education and cognitive skills but ignored non-cognitive skills. Therefore, in this study we will discuss the formation of non-cognitive skills through education. And we will suggest inclusion of these skills in measurement of human capital in addition to education as these are produced from education.