7 / 32
Summer 2016
7
(public, private, and foreign). Together,
those factors drive innovation and
entrepreneurialism, which increase
productivity and result in more jobs,
higher wages, and a better standard
of living. While we acknowledge the
importance of infrastructural and
capital investments to economic
growth, this study focuses specifically
on investing in education as a way to
increase human capital. Increases in
human capital drive economic growth
because they generate increased pro-
ductive capacity.
Human capital refers to the
economic value of an individual’s
knowledge, abilities, and experiences.
Speakers noted that investments in
human capital are important because
they generate returns at several levels:
wage returns to individuals; innova-
tion, creativity and productivity returns
to businesses; and wealth and health
returns to the community. VanAusdle
suggested that a well-educated work-
force can also attract employers from
outside the region, further stimulat-
ing economic growth. Investments in
human capital are vital as we move
into an increasingly postindustrial
economy, characterized by competi-
tion and insecurity. In this age of rapid
technological change, our economic
future is profoundly uncertain—we
may not even be able to imagine
the kinds of jobs that will exist in a
few decades. In the face of so much
change and unpredictability, the abil-
ity to “learn how to learn” is essential to
long-term employability.
A key way to increase human
capital is to invest in education. In
this study, education is considered
broadly—from early learning to
postsecondary education. We consider
returns to human capital produced
through investments in education
in two different ways: educational
attainment and quality education.
Educational attainment is defined in
terms of terminal year or degree. Qual-
ity education is a broader concept;
in this report, we use it to describe
practices, environments, and con-
tent that helps learners acquire the
knowledge, skills, and behaviors that
support employability in living-wage
jobs. Because both are important to
the development of human capital,
this study takes into account strategies
to increase educational attainment
and strategies to increase quality
education.
Family design challenge: Pipe cleaner towers. Photo courtesy of Pacific Northwest National Laboratory.