Human capital formation within families: a study in the North Central Province of Sri Lanka

Abstract

The aim of this paper is to uncover the role of family in human capital formation through education, so as to draw important policy implications for poverty reduction. The study used both descriptive statistics and Binary Logistic Analysis to examine the influence of different family factors on the education level of children. The study is based on primary data collected from three villages of the North Central Province of Sri Lanka. The study found that four family factors- namely, family assets, presence of senior siblings, presence of junior siblings and father’s age, had been significant in determining the children’s education level thereby forming a family role model. The two factors, family assets and presence of senior siblings, had a positive relationship with children’s education level, while the other two had an inverse relationship. Further, it was found that gender, living area of the family were not significant factors to be included in the model. Finally, the model developed by the study is useful in the public policy decisions on human capital formation through education, which uses the family as the bottom level basis for reducing poverty.