Education can be defined as the stock of skills, competencies, and other productivity-enhancing characteristics embedded in labor, or in other words the efficiency units of labor embedded in raw labor hours. In general, education—as a critical component of a country’s human capital—increases the efficiency of each individual worker and helps economies to move up the value chain beyond manual tasks or simple production processes. Education concerns not only the quantity of schooling—the percentage of the population that completed primary, secondary, or tertiary education—but also, critically, its quality. This indicator will capture the overall quality of the education system and the extent it teaches the relevant skills.
Source: World Economic Forum